Bills receivable account

Bills receivable account is a legally enforceable claim for payment from a business to its customer/clients for goods supplied or services turn into in execution of the customer’s order. These are generally in the form of invoices lift by a business and delivered to the customer for payment within an agreed time frame. Bills receivable account is shown in a balance sheet as an asset. Bills receivable account may be distinguished from notes receivable, which are debts created through formal legal instruments called promissory notes.