Accrued rent receivable definition
/What is Accrued Rent Receivable?
Accrued rent receivable is the amount of rent that a landlord has earned, but for which payment from the tenant is still outstanding. This situation arises when a tenant has made use of property owned by the landlord, but has not yet paid the agreed-upon amount of rent for that usage period. This entry is made as part of the closing process at the end of each reporting period .
Presentation of Accrued Rent Receivable
The accrued rent receivable account is considered a current asset , since rent is typically due within the next year. A landlord could offset this receivable with an allowance for doubtful accounts , if there is a probability that a tenant will not pay rent.
