When the customer pays the invoice, it eliminates that portion of the receivable balance. Depending on how you recognize discounts, the sales discount might have an immediate effect on the balance ...

Accounts receivable are often sold at a discount in order to raise cash quickly and to reduce the risk that debtors will fail to pay in full. Accounts receivable (AR) is the balance of money due ...

Let's work through a simple example of how to calculate and account for interest receivable and interest revenue for notes receivable. There are a few oddities in accounting and finance ...

With discounting, specific invoices are selected to use as security against the advance or line of credit. With factoring, the lender takes the complete accounts receivable ledger and manages ...