Notes receivable refers to legal instrument claims for which credit has been issued as evidence of debt, such as with a promissory note. Credit instruments usually require debtors to pay interest and ...

Companies often extend credit to other businesses in the form of a note, or a short-term loan. Most notes pay a stated rate of interest, resulting in interest revenue that the lender must record at ...

Calculate interest for notes using a 360-day year for accuracy. Record interest revenue as it accrues, before actual cash is received. Adjust entries for accrued interest to match revenue recognition ...