What is account receivable and payable?

Deliver the product and expect the amount on future date that becomes account payable for the buyer and account receivable for the seller.

Account Receivable is a money owned to a business by its clients ( customers or Debtors ) and showed on its balance sheet as on asset Account payable is money owed by a business to its suppliers show as a liablity on the balance sheet Both Account Receivable & payable ( represents personal account in nature ) Account Receivable always shows Debit Balance Account Payable shows Credit Balance