Company in settlement of an open accounts receivable. What entry will Reck Company make upon receiving the note is $1680
The promissory notice journal access is recorded by debiting the account that gets price, commonly the coins account, and crediting the notes payable account.The magazine entry for hobby on a note receivable is to debit the hobby profits account and credit score the coins account.
A note receivable is likewise called a promissory observe. whilst the notice is due within less than a 12 months, it's far taken into consideration a modern asset at the stability sheet of the employer the observe is owed to. If its due date is extra than a yr inside the destiny, it is considered a non-current asset.
Receivable consist of employee cash advances with a written promise to pay and uncollected change accounts receivable (sales owed to a agency on credit) transformed into promissory notes.
Waterway company receives = $21000
TIME = 3 months
open accounts receivable = 8%
Hence, Accounts Receivable = 8% of $21000
= $1680
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