Question

Dr. ted walker runs a chiropractic clinic. he typically bills his customers for services he performs and gives them about 30 days to make the payments. these amounts of money that his customers owe are called

Answer 1

Those amounts of money, to be paid within 30 days, that Dr. Ted’s customers owe are called debts. Debts are generally classified as “Account Receivables (AR)”, an earned money but has not have been received or ‘on hand’ yet. In the case of Dr. Ted, he already provided services and he already earned, but he didn’t received the payment (cash in) yet.

Answer 2

The term that is described in the problem is called accounts receivable. This means that in the future, you are anticipating something to go to your inflow. Since the Dr. is considering 30 days for them to pay the charges, he is still yet to receive the payment in the future. This is a common element in accounting money.