Generally Accepted Accounting Principles (GAAP) provide organizations with important guidelines for how financial transactions and accounts should be reported. When it comes to Accounts Receivable (AR), the rules prescribe that all customer payments must be properly recorded and tracked, while cash payments must be applied to open invoices in a timely fashion. Moreover, companies should always keep detailed records of all their customer account information and ensure accuracy when recording amounts owed, payments received, and any customer incentives that have been offered. By following the GAAP rules for Accounts Receivable, businesses are better able to understand their current financial situation and make informed decisions about their future.