Asked by Emily_ nicole on Jun 21, 2024
Verified
A company received a $15,000,90-day,10% note receivable.The journal entry to record receipt of the note includes a debit to Notes Receivable.
Notes Receivable
Claims for which formal agreements of credit are made between borrowers and lenders, often involving interest.
Journal Entry
A record that captures all the financial transactions of a business, displaying debits and credits in the accounting system.
- Identify the categorization and influence of notes receivable in financial reporting.
Verified Answer
OP
Osmey PardiasJun 27, 2024
Final Answer :
True
Explanation :
When a company receives a note receivable, it is recorded as an asset on the balance sheet under Notes Receivable account, and thus the journal entry to record receipt of the note includes a debit to Notes Receivable.
Learning Objectives
- Identify the categorization and influence of notes receivable in financial reporting.
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