The correct option is (c) note receivable
A formal credit arrangement between a creditor and debtor is called note receivable.
<h3>What receivable means?</h3>
Receivables, sometimes referred to as accounts receivable, are sums of money owing to a business by its clients for products or services that have already been provided or utilized but have not yet been paid for.
<h3>Is note receivable a debit or credit?</h3>
debit
Notes receivable typically have a debit balance. Debits increase notes receivable and credits decrease them, just like with other assets.
<h3>What type of account is notes receivable?</h3>
The value that a company is owed in promissory notes is recorded as notes receivable, which makes them an asset.
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