When a business sells goods to a customer on credit terms is might draw up bill of exchange setting out the amount due and the date on which the amount must be paid. The amounts outstanding under these bills of exchange are referred to as bills receivable.
Last modified November 27th, 2019 by Michael Brown
Bills of exchange can be used when credit terms are offered by a business to a customer. The bill is a transferable document which when accepted, indicates agreement by the buyer that the amount of the bill is payable on a particular date.