Accounts Receivable
Animation
Income and Balance Sheet
Sally buys products (inventory) from John. As she makes her purchase, the money needs to be recorded as revenue (sales dollars) and, because Sally doesn't pay for the products at that time, the value (what is still owed) goes to a holding area called "Accounts Receivable," a container for who owes John money.
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Company address
Adilas, LLC
517 Bake Street
Salida, CO 81201
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