Accounts receivable are trade accounts of businesses representing moneys due for goods sold or services rendered evidenced by notes, statements, invoices or other written evidence of a present obligation. It is one of a series of accounting transactions involving the billing of customers who owe money to a person, company or organization for goods and services that have been provided to that customer. In a one-person organization this action takes place through a series of written invoices.
On a larger scale, Accounts receivable refers to the amount a customer or client owes an entire business. Sometimes called trade receivables, they are classified as current assets (assets expected to be sold or otherwise used in the near future).
To record a journal entry for a sale on account, one must debit a receivable and credit a revenue account: the ending balance on the trial balance sheet for accounts receivable is always debit.