Trade Receivables refer to the amounts owed to a business by its customers for goods or services that have been delivered but not yet paid for. This financial asset is recorded on the balance sheet and represents a claim for payment, typically arising from credit sales. Businesses often extend credit to customers to encourage sales, which can lead to increased revenue. However, managing Trade Receivables is crucial, as it involves monitoring payment terms and ensuring timely collections to maintain healthy cash flow and reduce the risk of bad debts.