Claims of the business against its customers for unpaid bal?ances from the sale of merchandise or the performance of services are recorded on the Balance Sheet as:

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Claims of the business against its customers for unpaid balances are recorded as Accounts Receivable on the Balance Sheet. Accounts Payable is used to record the business's own unpaid balances owed to suppliers or vendors. Bills and Credit charges are not appropriate categories for recording claims against customers.

Claims of the Business Against Its Customers for Unpaid Bal?ances