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in this video i will briefly explain how companies recognize accounts receivable the term receivable refers to amounts due from individuals and companies receivables are claims that are expected to be collected in cash the management of receivables is a very important activity for any company that sells goods or services on credit receivables are frequently classified as accounts notes and other accounts receivable are amounts customers owe that result from the sale of goods and services on account accounts receivable serves as a control account because it summarizes the total of all the individual customer receivables companies generally expect to collect accounts receivable within 30 to 60 days notes receivable represent claims that are evidenced by formal instruments of credit they normally require the payment of interest and extend for time periods of 60 to 90 days or even longer notes and accounts receivable that result from sales transactions are often called trade receivables o
