Chapter 8, Problem 8.1SE

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

To Identify: The job that must be withheld from a company’s credit department in order to safeguard its cash, and if the credit departments perform that job, then how can the employee department employee hurt the company.