A company that frequently exchanges goods or services for notes would probably include a debit column for notes receivable in the sales journal so that such transactions would not need to be recorded in the general journal. A separate subsidiary ledger for notes receivable may also be created. If the amount of notes receivable is significant, a company should establish a separate allowance for bad debts account for notes receivable. When a note's maker pays according to the terms specified on the note, the note is said
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