» Drawer can keep the bill until it's due and get the money from the person who is supposed to pay it. » He can endorse the bill in favour of his creditors.
When a bill of exchange is dishonored, the amount owing by the customer is moved back to the account receivable account.
Invoices are arranged chronologically. When a company has multiple transactions, day books are useful. Today, trade receivables are posted in books.
Bills due have varying due dates. Different causes may prevent some from being honored. Bills receivable daybooks track outstanding bills.
Short-term bills receivable- Bills due within one year of the balance sheet date are listed in the balance sheet as current assets.
Long-term bills receivable- Bills due after one year from the balance sheet date are listed in the balance sheet as non-current assets.
· Creating Bills Receivable · Remitting Bills Receivable · Managing Bills Receivable · Bills Receivable in the Balance Sheet · Accounting on Payments Receivable