Abiblo Finance - Account Receivable
Account receivable also known as trade debtors. It indicates the amounts owing to the business from the customers. Also known as invoiced amounts. It is classified as current assets on the balance sheet. It is different in comparison with the non trade debtors and prepayments. In line with the prudence concept, amount receivable balance is shown against the provision of bad debts. Provision of bad debt shows the company past history of bad debt and current expectations. Based on the percentage of total credit sales.