Accounts Receivable
Code: 1140
👁 Views: 139
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Amounts owed by customers
Sub-accounts
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IFRS 9
Financial Instruments
US GAAP
ASC 310
Receivables
⚠️ Key Difference Between IFRS and US GAAP
IFRS uses forward-looking ECL model; GAAP uses incurred loss — ECL adopted for banks only
❓ Frequently Asked Questions
Q: What is Accounts Receivable?
A: It represents amounts owed to the company by customers for goods or services sold on credit. It is a current asset.
Q: What is the journal entry for credit sales?
A: Dr. Accounts Receivable, Cr. Sales Revenue (and Cr. Output VAT if applicable).
Q: How is the customers account reconciled with customers?
A: Periodic statements are sent to customers and their balances are matched with the company’s records, preparing an accounts receivable reconciliation.