Notes Receivable

What is a Notes Receivable?

Notes receivable are amounts due to a business usually from their customers for supplies made to them on credit.

The difference between a notes receivable and an accounts receivable is that notes receivable are issued as a promissory note (a written note promising to pay principal plus interest at a specific date).

Notes receivable are often used when a customer wants to extend their credit terms on an overdue account.

For further details on the notes receivable definition see the double entry bookkeeping notes receivable tutorial.

Additional information can be found at Wikipedia at the notes receivable definition link.

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Last modified March 23rd, 2016 by Team

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