(v2050.00) Notes Receivable

(Increase in Notes Receivable (v2050.01))

Face value of outstanding notes that the company expects to collect within one year. Notes Receivable (v2050.00) usually differs from trade accounts in two ways:

  1. Notes Receivable (v2050.00) are evidenced by a formal promissory note, whereas Accounts Receivable (v2020) involve only an informal promise to pay.

  2. Notes Receivable (v2050.00) often earn interest, whereas Accounts Receivable (v2020) usually do not.

Any interest income from Notes Receivable (v2050.00) can be entered into Other Interest Income (v1220).