Accounts receivable of a firm is a legally enforceable claim for payment from a business to its customers / clients for goods supplied and / or services rendered in execution of the customer’s order. The purpose of the study is to establish how Accounts receivable management tries to minimize the amounts of money tied up in form of accounts receivables and thus takes the organization back to its original set goals. Their accurate monitoring and proper management are also important dimensions in organization. This study examined the effects of receivables management on manufacturing companies in Nigeria using Nestle Nigeria Plc. and Cadbury Nigeria Plc. as case study. The study further examined the effects of sales growth on corporate performance and the effects of bad debt on company’s profitability. The study used secondary data collected from the annual reports of both companies for the period 2000-2011 using bad debt, accounts receivable and sales growth as variables. The Hypotheses were analyzed using regression analytical tools. The result showed that accounts receivable directly affects the profitability of the company having a negative relationship. It was advised that companies should create credit extension policies.

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