Asked by Abo Yousef Khaleel on Jul 26, 2024
Verified
Explain how to record the receipt (acceptance)of a note receivable.
Note Receivable
A financial asset representing a promise to receive a specific amount of money in the future, often with interest.
Receipt
A written acknowledgment that something of value has been transferred from one party to another.
- Record the journal entries for the acceptance of note receivable and calculate interest on notes receivable.
Verified Answer
SG
Stefy GilesJul 28, 2024
Final Answer :
The receipt of a note receivable is recorded by entering the total amount borrowed (principal)as a debit to Notes Receivable and as a credit to the account representing the asset or service exchanged for the note (typically cash,sales,or accounts receivable).
Learning Objectives
- Record the journal entries for the acceptance of note receivable and calculate interest on notes receivable.