Amounts owed to another for purchases made on credit which come due in less than one year are known as receivables.

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Amounts owed to another for purchases made on credit that come due in less than one year are known as accounts payable, not receivables. Receivables are amounts owed to a business by its customers for goods or services that have been sold on credit and are due to be paid within a year.

Amounts Owed to Another for Purchases Made on Credit Which