Ans:
The accounts receivable management process typically follows some steps listed below:
Customer invoicing mentioning credit policy and date due.
Recording the transaction and due date.
Monitoring the due through a collection and follow-up schedule.
Generating bills that are overdue and bills due chronologically.
Sending letters of reminder with bill details and due date.
When payment is received, a receipt, adjustment entry and sales account are to be recorded accordingly.
If cash discounts are allowed for early payment, a suitable adjustment entry is reflected in the accounts receivable account.