How does a payment on an account by a customer affect accounts receivable?
submitted by Anita Nap

knorkitoff

Customer payments reduce your accounts receivable balance. It settles part or all of the outstanding amount owed.

Your journal entry would involve a debit to cash and a credit to accounts receivable. This shows that you received the funds, which also means a decrease in receivables.

Allanov

When a customer pays a bill, the amount in accounts receivable goes down because you're getting paid. So, accounts receivable decreases, and cash increases.

Tron Lives

The money your customer owes you is on accounts receivable, so if a customer pays you, that means they owe you less money now. This will lower your accounts receivable by the amount they paid you.