What Do You Mean By Trade Debtor?


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The term “trade debtor” is a term commonly used when talking about firms. It refers to a customer, who has not made payment even though the company has delivered the good or service to the customer. This outstanding amount appears under a heading called accounts receivable“and is an asset for the company as it represents the revenue that the company has earned. This situation often arises in a business because firms often carry out their transaction on credit basis, making the payment later on.

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