Accounts Receivable

Accounts Receivable are funds that customers have promised to pay suppliers.

If you go into Sears and charge a $100 coat, Sears has $100 account receivable. They let you walk out with the coat because you promised to pay them $100. They will soon receive $100 from you so they have an account receivable. Accounts receivable is commonly abbreviated as A/R.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/accounts-receivable/