Question

Accounts receivable__________.A. are reported on the income statement.B. are amounts owed to a business by its customers.C. arise from the purchase of goods or services on credit.D. will be collected within the discount period or when due.

Answer 1

Answer:

B. are amounts owed to a business by its customers.

Explanation:

Account receivable is the payment due by its customers in respect of  goods sold on a credit basis. It is shown in the current assets side of the balance sheet.

The computation of the ending account receivable balance is shown below for better understanding

Ending account receivable balance = Beginning account receivable + credit sales - collections - written off amount