On 14 May,Green Pty Ltd sells goods to Gold Pty Ltd with payment to follow within 60 days.On Green's balance sheet the amount owed by Gold should be recorded as:

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The amount owed by Gold Pty Ltd is an account receivable, as it represents an amount that is owed to Green Pty Ltd for goods that have been sold and will be paid for within 60 days. A customer advance payment would be if Gold Pty Ltd had paid prior to receiving the goods, an account payable would be if Green Pty Ltd owed money to Gold Pty Ltd, and inventory would be the goods that Green Pty Ltd still has in stock.

On 14 May,Green Pty Ltd Sells Goods to Gold Pty