Question

Miller is the owner of a restaurant that has several franchises. One of the franchisees owes Miller a sum of $18,000 for the goods that he had bought from Miller on credit. In this scenario, the money owed to Miller is known as _____.

Answer 1

Answer:

Accounts receivable

Explanation:

Accounts receivable is the money owed by a company to its debtors. They are usually legal payments for goods and services procured in credit without paying for them.

• The franchise is treated as the debtor in this deal.
• Miller is owed an account receivable of $18000
• A common example is water and electricity bills.
• Such goods are supplied before they are paid for.