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hello and welcome to a general discussion about accounts receivable after viewing this video you should be able to describe the transactions that create an accounts receivable record sales discounts using the gross and net methods and record sales returns and sales rebates accounts receivable is initially recorded when goods or services are provided to a customer and cash is expected to be received in the future most business-to-business transactions occur on account account means payment will be received in the future typically 30 days interest is not charged on accounts except when the account is way past due companies sometimes offer a trade discount to their consistent major customers a trade discount occurs when goods are sold to a customer at a price below their normal list price trade discounts are also referred to as volume discounts the purpose of a trade discount is to hide the real price to the best customers from competitors a trade discount is not recognized separately whe