MANAGEMENT

Detailed explanation-1: -An accounts receivable record identifies the companies from which credit purchases were made and the amount purchased, paid, and owed.

Detailed explanation-2: -Credit sales refer to a sale in which the amount owed will be paid at a later date. In other words, credit sales are purchases made by customers who do not render payment in full, in cash, at the time of purchase.

Detailed explanation-3: -Accounts payable (AP) represents the amount that a company owes to its creditors and suppliers (also referred to as a current liability account). Accounts payable is recorded on the balance sheet under current liabilities.

Detailed explanation-4: -When a company sells goods on credit, it reports the transaction on both its income statement and its balance sheet. On the income statement, increases are reported in sales revenues, cost of goods sold, and (possibly) expenses.