Account receivable journal entries are the records of money that customers owe to a business. This is usually recorded in a specific, easy to read format and is typically used to make all accounting-related decisions for the business, such as evaluating profitability and preparing financial statements. Journal entry can also be used to update account balances or post adjusting entries whenever necessary. The journal entry must accurately reflect all customer transactions, from payment received to any other type of adjustment carried out. By keeping detailed and organized records of customer accounts, businesses can better manage their finances and ensure that their accounts remain up-to-date.