Ask Question
BusinessBusiness
8 March, 00:44

When a company receives an interest-bearing note receivable, it will

a. debit Notes Receivable for the face value of the note

b. credit Notes Receivable for the maturity value of the note

c. debit Notes Receivable for the maturity value of the note

d. credit Notes Receivable for the face value of the note

+1
Answers (1)
  1. 8 March, 03:08
    0
    a. debit Notes Receivable for the face value of the note

    Explanation:

    The note will generate interest over time, but at the moment of receiving the note, it hasn't accrued any interest, so we have to only record for the value of the note today.

    Also this note represent the right to claim cash from the person who sign the note, so it is an asset for the company.

    Asset increase from debit side, so the Note Receivable will be debited.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “When a company receives an interest-bearing note receivable, it will a. debit Notes Receivable for the face value of the note b. credit ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Shannon is struggling to communicate who Company ABC is compared to the competition. Shannon wants to communicate that Company ABC's brand has the benefits that the target market will value. Shannon is engaged in what marketing activity?
Answers (1)
Purshed discounts based on total purches over a period of time are what discounts
Answers (1)
Choose the statement about ITQs that is correct. A. The major problem with ITQs is that they create a monopoly. B. Fishers with low marginal cost sell ITQs to those with high marginal cost. C.
Answers (1)
Rebecca contracted Matthew Properties Inc. to repair her apartment for $20,000. On completion of repairs, Rebecca observed that the garages and the attic had not been repaired.
Answers (1)
g Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $276,000 and credit sales are $1,000,000.
Answers (1)
New Questions in Business
Preferred stock of leaping dolphin inc. pays 8% on the $100 par value. what is the value of the stock if the appropriate discount rate is 6%?
Answers (1)
Rachelle transfers property with a tax basis of $800 and a fair market value of $900 to a corporation in exchange for stock with a fair market value of $750 and $50 in cash in a transaction that qualifies for deferral under section 351.
Answers (1)
If the demand for a product is elastic the value of the price elasticity coefficient is
Answers (1)
4. If a person was interested in building houses, what are two jobs within the construction industry that might interest them?
Answers (2)
Toyota's remarkable growth as a multinational company is uniquely associated with which of the following? A. Jidoka B. Chaebols C. Kaizen and jidoka D. Kaizen and chaebols
Answers (2)
Home » Business » When a company receives an interest-bearing note receivable, it will a. debit Notes Receivable for the face value of the note b. credit Notes Receivable for the maturity value of the note c.
Sign Up Forgot Password?