Receivables

Definition: Receivables are amounts owed to a company by customers and other parties for goods sold or services rendered on credit. The principal type is Accou…

Receivables are amounts owed to a company by customers and other parties for goods sold or services rendered on credit. The principal type is Accounts Receivable (trade receivables), but the category also includes Notes Receivable, Interest Receivable, and other non-trade receivables. Receivables are reported on the balance sheet at net realizable value — gross receivables minus the Allowance for Doubtful Accounts (a contra-asset). Under ASC 326 (CECL), the allowance is estimated using a current expected credit loss model. Receivables is one component of the Quick Ratio numerator.