Accounts receivable represents money owed by companies to the supplier of goods or services on credit. In most business entities, the process for A/R is typically generating an invoice and either mailing or electronically delivering it to the customer. Payments are mde and received within an established timeframe, called credit terms or payment terms. The A/R team is in charge of receiving funds on behalf of a company and applying it towards their current outstanding balances. Collections occur when payments are not received timely, based upon the terms of sales. A common payment term is Net 3
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