Question

Blair Automotive performed mechanic services for two customers. The first customer owed $5,280 for services, so Blair Automotive made them sign a written promise to pay in full after six months with an annual interest rate of 3.5%. The second customer owed $326 for services, so Blair Automotive plans to send them a bill within the next two weeks, due within 30 days of receipt of the bill. What is the difference between these two transaction?

Answer 1

The first transaction will be recorded as a note receivable, whereas the second transaction will be recorded as an account receivable.

Step-by-step explanation:

Answer 2

The answer is: That the first is a contract and the second a record.

Step-by-step explanation:

The first is a contract of sale and purchase promise is a preparatory contract, that is, it is the preparatory or initial part of another contract, which is the contract of sale with which the promise in the promise contract materializes or materializes, and that requires the signature of both parties.

The second is a billing record on the invoice already issued.

The answer is: That the first is a contract and the second a record.