(1)
Accounts receivable:
Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.
Note receivable:
Note receivable refers to a written promise by the debtor for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to the lender or creditor. Notes receivable is an asset of a business.
To prepare: The
(2)
To prepare: The journal entry in the books of Corporation K to record the accrued interest revenue.
(3)
To prepare: The journal entry in the books of Corporation K to record the collection of principal and interest at maturity.
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Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition (5th Edition)
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