Journal entries are recorded in the Accounts Receivable ledger, providing a key snapshot of an organization’s financial standing. This bookkeeping term refers to the process of tracking transactions between buyers and sellers. When customers purchase goods or services from a business, the payment is initially accounted for in the Accounts Receivable journal entry. Businesses can then track how quickly customers pay their invoices and ensure that receivables remain collectible over time. With this journal entry, companies have an up-to-date record that accurately reflects how much money they’re owed, enabling them to better manage cash flow and maintain profitability.