What accounts receivable are recorded for sales on account rather than waiting until cash is received?

Accounts receivable are recorded for sales on account to reflect the amount owed by customers for goods or services delivered but not yet paid for. This practice allows businesses to recognize revenue immediately upon the sale, aligning with the accrual accounting principle. By recording these receivables, companies maintain an accurate picture of their financial position and cash flow expectations. This approach also enables better management of credit risk and customer relationships.