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    Dell's Avatar
    Dell Posts: 20, Reputation: 1
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    #1

    Feb 19, 2006, 12:09 PM
    Note Receivable
    Accepted a 90-day $1,000 note receivable from a company for services performed.

    How do I journalize this transacation?

    Note Receivables DR $1,000 and CR to which account?

    Thanks,
    Dell
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Feb 19, 2006, 01:12 PM
    Cr. Sales 1,000

    That is saying to a customer, instead of taking 30 days to pay me (Accounts Receivable), you can have 90, but at a certain interest rate... Notes Receivable
    Dell's Avatar
    Dell Posts: 20, Reputation: 1
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    #3

    Feb 19, 2006, 02:42 PM
    Instead of crediting sales can I enter the credit to Fee Income, because the company doesn't have a Sales account.

    Thanks,
    Dell
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #4

    Feb 19, 2006, 02:51 PM
    Yes,

    Sales, Fee Income, its all Revenue. Companies just call it different things.

    So if they have something for Fee Income, then Credit that.
    Dell's Avatar
    Dell Posts: 20, Reputation: 1
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    #5

    Feb 19, 2006, 04:48 PM
    Thank you so much.

    Dell
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