TRADE RECEIVABLES OR ACCOUNTS RECEIVABLES IN ACCOUNTING.

TRADE RECEIVABLES OR ACCOUNTS PAYABLES IN ACCOUNTING.

Transcript

00:00If your sales look like a mystery, let's uncover the clues behind trade receivables.

00:04Trade receivables. Ever heard the term?

00:07It's the money your business expects to receive from customers for goods or services sold on credit.

00:12In simple terms, it's what folks owe you.

00:14So, what makes up trade receivables?

00:17Two main parts. Debtors and bills receivable.

00:20First up, debtors.

00:22Imagine you sell a cool gadget to a customer, but they pay later.

00:25That customer is your debtor.

00:27They owe you money for that gadget.

00:29Next, bills receivable.

00:31This is like an IOU.

00:33It's a document or a promissory note from your debtor, promising to pay you on a specific date.

00:37And there you have it.

00:39Trade receivables equals debtors plus bills receivable.

00:42Easy, right?

00:44Want to master more business basics?

00:46Hit subscribe and join us at Accounting by Sonia Satya.

00:48Thanks for watching.