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Paper Company receives a $4,598, three-month, 3% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note
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40 votes
40 votes
Paper Company receives a $4,598, three-month, 3% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note

User Ahtisham Ashraf
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1 Answer

22 votes
22 votes

Answer and Explanation:

The journal entry that should be recorded at the time of receiving the note is given below:

Notes Receivable - Dame Company $3,164

To Accounts Receivable - Dame Company $3,164

(Being the receiving of the note is recorded)

Here the note receivable is debited as it increased the assets and credited the account receivable as it decreased the assets

User AmirNorouzpour
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