it is a note about when you receive your goods
debit Notes Receivable for the face value of the note.
note receivable
note receivable
An account receivable and a note receivable both refer to money that is owed to you/your company by another person/company. Both can be current assets or long term assets. However, the difference in the two is:A Note Receivable has some form of contract signed, [i.e. promissory note etc.] while an account receivable does not. A note receivable is generally paid out at equal interval payments and generally carries interest, while an account receivable can carry interest it generally does not.
what are advatages of note receivables discounted to creditors
it is a note about when you receive your goods
Debit notes receivable for the face value of the note.
debit Notes Receivable for the face value of the note.
note receivable
note receivable
An account receivable and a note receivable both refer to money that is owed to you/your company by another person/company. Both can be current assets or long term assets. However, the difference in the two is:A Note Receivable has some form of contract signed, [i.e. promissory note etc.] while an account receivable does not. A note receivable is generally paid out at equal interval payments and generally carries interest, while an account receivable can carry interest it generally does not.
what are advatages of note receivables discounted to creditors
credit to interest receivable
Notes receivable come into existence when a promissory note is written in business favor, whereas accounts receivable are the persons to whom business have to receive money for credit sales.
What are Advantage to creditor in case of note receivble than an ordinary account receivable?Read more: What_are_Advantage_to_creditor_in_case_of_note_receivble_than_an_ordinary_account_receivable
Debit notes receivable for the face value of the note.
This depends on the term of the Note Receivable.If the note receivable is a note that is expected to be received in 12 months or "less" or within one account cycle (generally a year) then it is listed as a Current Asset.If the note receivable is expected to be received in more than one year 13 + months then it is listed as a Non-Current Asset.