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Dell
Feb 19, 2006, 12:09 PM
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
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
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
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
Feb 19, 2006, 04:48 PM
Thank you so much.

Dell