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What is an Accounts Receivable for example?

23 Mar 2022 By PAYCEC

Examples of accounts receivable:

An example of accounts receivable includes an electric company that bills its clients after the clients received the electricity. The electric company records an accounts receivable for unpaid invoices as it waits for its customers to pay their bills.

Most companies operate by allowing a portion of their sales to be on credit. Sometimes, businesses offer this credit to frequent or special customers that receive periodic invoices. The practice allows customers to avoid the hassle of physically making payments as each transaction occurs. In other cases, businesses routinely offer all of their clients the ability to pay after receiving the service.

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