Unbilled customer accounts receivable should be reflected in the balance sheet of a governmentally owned utility even though the exact amount of service to be billed is unknown until the customers' meters can be read.

Question

Quizplus · Accepted Answer

Unbilled receivables represent revenues that have been earned and therefore should be reported in the current period. These receivables/revenues should be estimated as accurately as possible using projections based on past usage patterns for the same customers or recent usage patterns for other customers who have been billed.

Unbilled Customer Accounts Receivable Should Be Reflected in the Balance