oboloo Glossary

Increase To Accounts Receivable Debit Or Credit

oboloo Glossary

Increase To Accounts Receivable Debit Or Credit

Increase To Accounts Receivable is a business term that refers to an organization’s right to receive payment for goods or services it has provided. This increase can be recorded by increasing the debit balance of the organization’s accounts receivable account or by increasing the credit balance of the customer’s accounts payable account. In either case, it reflects the fact that a customer owes money to the organization and must pay it within agreed-upon terms. Increasing an accounts receivable debit or credit is an important accounting principle that ensures that organizations are paid on time for their efforts.