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Accounts receivable, or customer receivables, represent money a company expects from clients after it delivers goods, performs services or does anything else in between that a contract called for. Receivables arise only out of credit transactions because cash-on-delivery deals typically call for immediate remittances or advance payments. If a customer doesn't pay on time, the client's receivable becomes bad debt and ultimately goes into the "accounts to write off" category if corporate credit managers deem the money noncollectable.
Read more: What Is the Meaning of Accounts Receivable? | eHow.com http://www.ehow.com/info_8753395_meaning-accounts-receivable.html#ixzz2S3hwWcG3
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