Log in

View Full Version : Notes Receivable


LHughes
Apr 2, 2007, 11:39 AM
What is the purpose of using a note receivable instead of simply leaving the receivable account as-is? And is this used much in today's accounting world?

okunyah
Apr 2, 2007, 05:56 PM
Notes receivable is a written commitment from a customer to pay at a given future date. They mainly arise when.. say you decide to give credit to a new customer with no known credit history, you will use the note to make the credit more enforceable.