What is Accounts Receivable?

Legal Definition
Accounts receivable is a legally enforceable claim for payment held by a business for goods supplied and/or services rendered that customers/clients have ordered but not paid for. These are generally in the form of invoices raised by a business and delivered to the customer for payment within an agreed time frame. Accounts receivable is shown in a balance sheet as an asset. It is one of a series of accounting transactions dealing with the billing of a customer for goods and services that the customer has ordered. These may be distinguished from notes receivable, which are debts created through formal legal instruments called promissory notes.
-- Wikipedia
Legal Definition
Money owed to a business by another business or individual in exchange for property or services that were provided on credit. The settlement of an account receivable begins by sending an invoice to the customer. A company enters accounts receivable under "current assets" on its balance sheet.
Illustrative case law
See, e.g. United States v. Berg, 250 F.3d 139 (2d Cir. 2001).
See also
Legal Definition
Trade credit created by a company when it permits a client to pay in the future for goods or services that have already been delivered by the company. A client company is generally required to arrange payment within 7 to 180 days, though in some cases terms may extend even further. In exchange for granting the payment extension, the company implicitly or explicitly charges its customers a financing cost. Receivables granted in the normal