Asked by Dylan Wright on Jul 20, 2024

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If a promissory note is dishonored, the payee should still record interest revenue.

Promissory Note

A financial instrument involving a written promise by one party to pay a definite sum of money to another party under specific terms.

Dishonored

A term used when a financial obligation or instrument, such as a check or bill, is not honored or paid when presented for payment.

Interest Revenue

Money received for interest.

  • Compute interest on notes that accrue interest and comprehend the handling of notes that are not honored.
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Marian MikhailJul 27, 2024
Final Answer :
True
Explanation :
The promissory note being dishonored does not affect the accrual of interest revenue. The payee should still record the interest revenue even if the principal cannot be collected.