[LHughes]

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]

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.