What happens when a customer doesn't pay at the time of sale for accounts receivable?

When a customer doesn't pay at the time of sale, the transaction is recorded as accounts receivable, indicating that the company expects to receive payment in the future. This can affect cash flow and may lead to increased efforts in collections. If payment remains unpaid for an extended period, it may necessitate writing off the debt as a loss or taking legal action to recover the funds. Additionally, it could impact the customer's creditworthiness and future purchasing relationship with the company.