account receivable

Definition of "account receivable"
  1. The amount of money owed to a business by a customer who has purchased goods or services on credit
How to use "account receivable" in a sentence
  1. The company's account receivable from the credit sales is significant, signaling good future profits once collected.
  2. A high level of account receivable indicates a large number of customers have yet to pay for their purchases.
  3. Maintaining a low amount of account receivable reduces the risk of bad debts for the business.

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