Accounts Receivable Contract With Customer In Philadelphia
Category:
State:
Multi-State
County:
Philadelphia
Control #:
US-00402
Format:
Word;
Rich Text
Instant download
Description
The Accounts Receivable Contract With Customer in Philadelphia is a legal instrument designed for the sale of outstanding accounts receivable between a seller and a buyer. This contract outlines key components, including the seller's obligation to transfer their rights to the accounts listed in an attached exhibit, the representations made by the seller regarding the accounts, and provisions for potential recourse. It specifies that the buyer has a limited period to inspect the accounts and can cancel the contract if unsatisfied. The form is structured to be user-friendly, with clear sections for filling in details pertaining to the transaction. The utility of this form is particularly important for attorneys, partners, and business owners who need to manage accounts receivable transactions efficiently. Paralegals and legal assistants will also benefit from understanding the form's structure, as it aids in contract preparation and compliance with local laws. The contract's clarity allows even users with minimal legal experience to engage confidently in accounts receivable sales.
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FAQ
The 10% Rule specifically suggests that if 10% or more of a customer's receivables are significantly overdue, all receivables from that customer may be considered high-risk.
Days Sales Outstanding (DSO) It's calculated by dividing 365 by the receivables turnover ratio. If the turnover ratio is 10, the DSO would be 36.5, indicating that the company has 36.5 days of outstanding receivables.
Average accounts receivable is calculated as the sum of starting and ending receivables over a set period of time (generally monthly, quarterly or annually), divided by two.
