I accidentally saved this screenshot. Maybe you can look at this and maybe you can understand the concept of accounts receivables.
Remember, when you do sales, you can either receive cash or cheque due to the payment made by them (customer). But when you've made your sales and you receive nothing accept the promises made by them (customer), then you'll need to remember their names. It is because they are now owing you! So in a way, your asset in terms of Accounts receivables appears in your life. You own them because they are holding your money!...
When they pay, you need to reduce the amount they are owing because you received their money. So the total receivables will eventually become lesser and lesser because of the payments made.
I think I'll a movie director after I retired.....
I think I'll a movie director after I retired.....
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