Final answer:
Unbilled and unpaid sales transactions are tracked in the accounts receivable ledger, a critical financial record for managing a company's cash flow and preparing financial statements.
Step-by-step explanation:
You can see all of your unbilled and unpaid sales transactions in the accounts receivable ledger.
Accounts receivable is a term used in accounting to describe the money owed to a business by its clients or customers for goods or services that have been delivered or used, but not yet paid for. Typically, businesses maintain an accounts receivable ledger where all credit transactions are recorded. This ledger provides a detailed record of each sales transaction, including the date of sale, invoice number, customer name, amount due, and payment due date.
By reviewing this ledger, a business can easily see which invoices are outstanding and manage its collection process effectively. It is crucial for cash flow management as it gives insights into the potential cash that is expected to be received. It is also used for preparing financial statements that reflect the company's financial health. Regularly reviewing the accounts receivable ledger helps businesses to monitor their cash flow and to make informed financial decisions.