In business accounting, notes receivable are promissory notes that represent an asset. These promissory notes are either short-term or long-term and should be recorded on the balance sheet differently ...

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 ...