Checkout
Start free trial
Take Naologic for a spin today, no credit card needed and no obligations.
Start free trial
Question

Accounts Receivable - What category is accounts receivable?

Answer

Assuming they are due within one year, accounts receivable are considered current assets. It is necessary to debit a receivable and credit a revenue account in order to record a journal entry for a sale on account. The journal entry is debited for cash and credited for receivables when a client settles their accounts.