Recording Notes Receivable Transactions

Recording Notes Receivable Transactions - Brown for $2,500....

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Recording Notes Receivable Transactions Customers frequently sign promissory notes to settle overdue accounts receivable  balances. For example, if a customer named D. Brown signs a six-month, 10%, $2,500  promissory note after falling 90 days past due on her account, the business records the  event by debiting notes receivable for $2,500 and crediting accounts receivable from D. 
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Unformatted text preview: Brown for $2,500. Notice that the entry does not include interest revenue, which is not recorded until it is earned. If a customer signs a promissory note in exchange for merchandise, the entry is recorded by debiting notes receivable and crediting sales....
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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