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lets imagine this you finally fulfill your dream of becoming a real estate investor you meet with your agent and sign the papers all as well as your first tenants sign on for a one year lease and move in youve made it youre now getting rental income every single month but after month three you run into a little problem rent is due and your tenant cannot pay they said hopefully next month because they just lost their job frustrated you go to your record books and mark down a thousand dollars in rent to be received next month hi im nathan from accounting university and today you will learn how receivables work in accounting in just five minutes now remember youre owed a thousand dollars in rent by your tenant to be received at a later date in accounting we call this a receivable meaning it has the potential to be received at a later date hence why the word ends in a bull because you have the potential but its not guaranteed that you will receive that cash now a receivable is consid
