Account Receivable

Receivables represent receivables from the company to a third party arising from a transaction on credit. Basically receivables can be classified into 3 types, namely:
1. Company's accounts receivable is billed to the customer as a result of the sale of goods or services on credit, in which case the bill is not accompanied by a formal letter of agreement, but because of the element of trust and company policy in which the sales have set the terms of sale as 2/10, n/30. This means that receivables arising expected to be received within a maximum period of 30 days from the date of the transaction. If the customer pays in less than 10 days after the date of the transaction will be given pieces / discount of 2% of the sale price. Accounts receivable time periods less than one year that are reported as current assets.
2. Non-trade receivables consist of a variety of bills that are not included in accounts receivable and notes receivable. For example, accounts receivable to the employees, company directors, and the receivables to the company branches.
3. Notes receivable are receivables more formal than accounts receivable because in a written agreement requiring the debtor to the creditor to pay a sum of money mentioned in the appointment letter at a specific time in the future. Term notes receivable are generally more than 60 days, if the term note receivable of less than one year are reported in the balance sheet as current assets while notes receivable maturity of more than one year are treated as long-term receivables.