Receivable

A receivable is an amount due to an entity from another party; trade receivables usually arise from credit sales. For a normal credit sale, record the customer's obligation when an unconditional right to consideration arises. The subsidiary ledger tracks each customer, while the control account summarises balances. Review unpaid amounts and recognise an appropriate allowance for expected credit losses. Record a settlement against the correct customer account, then reconcile outstanding balances regularly.

Also called: Amount receivable