ACCOUNTS BY SONIA SETIA
ACCOUNTS BY SONIA SETIA
  • 3 weeks ago
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.

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