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kap26 [50]
3 years ago
6

When an interest-bearing note comes due and is uncollectible, the journal entry includes debiting

Business
1 answer:
Mamont248 [21]3 years ago
7 0

When an interest-bearing note comes due and is uncollectible, the journal entry includes debiting Accounts Receivable and crediting Notes Receivable and Interest Revenue.

Accounts receivable is money that is owed to a company by its debtors. The notes receivable is an account on the balance sheet that is included as an asset if the life of the item is less than a year old. Interest revenue is the earnings that a person or company makes off the investments that they are invested in - the interest that is saved and kept, revenue.

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