Define a note receivable and explain how to calculate the interest due on a short-term note receivable.

Note Receivable

A written promise that entitles the holder to receive payments from a debtor according to agreed terms.

Short-Term Note

A debt obligation with a maturity of less than one year, typically used for immediate financing needs.

Interest Due

The amount of interest that has been accrued and is payable on borrowings for a specified period.