Disclosure of accounting basics, one of the creative topics is accounting for receivables. This issue is closely linked to the accrual principle, since the receivables are current assets recognized in the sale of goods or services. This article continues to expand on the concept of claims and their accounting aspects.
As already mentioned, receivables can be accounted for in the category of current assets and are recognized as a result of the goods. sale or service. Claims represent business law to request payment from customers for the sale made. So this is a debt from the customers to the seller, which has to be repaid within the time limits set by the parties, ie the seller and the customer.
Receivables are recognized when businesses sell goods or provide services, but cash from the customer is later collected. This kind of tool is only developed if the accrual accounting principle is applied, which means that the sales revenue is accounted for because cash has not yet arrived. The following account entry is made:
D Receivables (current asset category) $ 1000
C Sales revenue $ 1000
When cash from customers is collected, the following billing item is made:  $ 1000
C Receivables $ 1000
Since claims belong to the current asset category, their balances are presented separately in the balance sheet.
Below is a simple practical example of settlement of receivables. Let's say that on March 15, ABC sold goods to DCF customers for $ 5,600. Both parties agreed that DCF would pay these goods within 30 days of the sale, ie the final payment deadline on 14 April. On March 31, he paid a portion of the debt paid to the customer, ie $ 1,300. The rest was paid on April 5th.
1. On March 15, the following book entry is included in the seller's books:
D Receivables $ 5,600
C Sales Revenue $ 5,600
2. On March 31, the following entries are included in the books of the seller:
Cash D $ 1,300
Customer Receivable C $ 1,300
The outstanding balance of the DCF customer is $ 5,600- $ 1,300 = $ 4,300  3. On April 5, the following entries are listed in the books of the seller:
Cash D $ 4300
C Claim $ 4.300
The remaining debt of the DCF customer is $ 0.
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