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account receivables we all know what account receivables are account receivables are our customers to whom we sell goods or services on credit so we we sometimes call them trade receivables sometimes account receivable so these are our customers individuals or firms from whom we have to receive some money for some goods we have sold to them or maybe we would have provided some services to them now there are two types of receivables current and non-current current account receivables mean these are the customers to whom you have sold goods or services and they are most likely to pay with you within one year or operating cycle so current account receivables are your current asset reported as a part of your current assets and non-current receivables mean these are the customers that will pay you after one year so how do we report current account receivables this is how we do lets say you have sold goods or provided services to the customers and on the balance sheet date this is the amoun