It is termed as the money which is owed to a company for products and services provided on credit. It is the important form of the businesses and has provided a lot of ease to work on credits. However if these receivables are not paid back, it becomes a bad debt to the company.
To cut a long story short accounts receivable is simply accounts that owe you money that can be considered an asset. Accounts payable on the other hand are accounts that you owe money to and are considered a liability.
Accounts receivable is basically a sequence of accounting transactions. This is done by trading with billing of customers who kind of owes some amount to an individual or even a company or organization for any kind of goods or services that is usually given to the customers. This is generally done in a single organization where it is written by invoice and mailing or delivering. Usually a company has a balance sheet, on which amount receivable is where a certain amount has to come into the company. Huge companies this is done with the help of accounting software on a specific computer. Some of the other types that are termed as accounting are accounts payable, payroll, and trial balance. Sometimes such payments are handled by collection agencies or collection attorneys, which are hired by the company.
