Selling goods on credit to your customers makes the customer our Debtor. A customer is entitled to pay the amount for which goods are sold on credit.
The word debtor comes from the word debt. As per Wiki,
“A debtor is an entity that owes a debt to another entity. The entity may be an individual, a firm, a government, a company or other legal person.”
They are treated as current assets. The amount due from our customers becomes our receivable. These transactions are recorded in Accounts Receivable Ledger.
You can download a ready to use Accounts Receivable Ledger Excel Template from the link below:
If you have any queries or questions, share them in comments below and I will be more than happy to help you.