There are some very very very inept posters on this forum, it...

There are some very very very inept posters on this forum, it actually worries me people on here invest their hard earned money and don't have a basic understanding of business.

Please see below a simple explanation of how Trade Receivables are recorded.

"To record a trade receivable, the accounting software creates a debit to the accounts receivable account and a credit to the sales account when you complete an invoice. When the customer eventually pays the invoice, the accounting software records the cash receipt transaction with a debit to the cash account and a credit to the accounts receivable account."

It is almost impossible to estimate sales for the company based on Trade Receivables, as it will depend on the agreed trade terms & debtor days.

In a perfect world if all customers were invoiced the same amount on the last day of the month and paid their prior bill on the last day of the month you can simply multiply the Trade Receivables by 12, but there is no such thing as a perfect world, and there are obviously many many variables.