Note receivable: It refers to the amount that is to be received by a company from a third party on a promise to pay at any specified future date. Accounts Receivable : It refers to the amount that is to be received by a company for providing goods and services on credit. It is an asset account. To explain: The reasons of preference of note receivable over accounts receivable.

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Answer 1

Question

Chapter 7, Problem 4DQ

To determine

Note receivable:

It refers to the amount that is to be received by a company from a third party on a promise to pay at any specified future date.

Accounts Receivable:

It refers to the amount that is to be received by a company for providing goods and services on credit. It is an asset account.

To explain: The reasons of preference of note receivable over accounts receivable.

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Answer 2

Question

Chapter 7, Problem 4DQ

To determine

Note receivable:

It refers to the amount that is to be received by a company from a third party on a promise to pay at any specified future date.

Accounts Receivable:

It refers to the amount that is to be received by a company for providing goods and services on credit. It is an asset account.

To explain: The reasons of preference of note receivable over accounts receivable.

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Answer 3

Question

Chapter 7, Problem 4DQ

To determine

Note receivable:

It refers to the amount that is to be received by a company from a third party on a promise to pay at any specified future date.

Accounts Receivable:

It refers to the amount that is to be received by a company for providing goods and services on credit. It is an asset account.

To explain: The reasons of preference of note receivable over accounts receivable.

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Answer 4

Question

Chapter 7, Problem 4DQ

To determine

Note receivable:

It refers to the amount that is to be received by a company from a third party on a promise to pay at any specified future date.

Accounts Receivable:

It refers to the amount that is to be received by a company for providing goods and services on credit. It is an asset account.

To explain: The reasons of preference of note receivable over accounts receivable.

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Answer 5

Chapter 7, Problem 4DQ

To determine

Note receivable:

It refers to the amount that is to be received by a company from a third party on a promise to pay at any specified future date.

Accounts Receivable:

It refers to the amount that is to be received by a company for providing goods and services on credit. It is an asset account.

To explain: The reasons of preference of note receivable over accounts receivable.

Answer 6

Chapter 7, Problem 4DQ

To determine

Note receivable:

It refers to the amount that is to be received by a company from a third party on a promise to pay at any specified future date.

Accounts Receivable:

It refers to the amount that is to be received by a company for providing goods and services on credit. It is an asset account.

To explain: The reasons of preference of note receivable over accounts receivable.

Answer 7

Chapter 7, Problem 4DQ

To determine

Note receivable:

It refers to the amount that is to be received by a company from a third party on a promise to pay at any specified future date.

Accounts Receivable:

It refers to the amount that is to be received by a company for providing goods and services on credit. It is an asset account.

To explain: The reasons of preference of note receivable over accounts receivable.

Answer 8

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Answer 9

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Answer 11

Ch. 7 - Prob. 1MCQ Ch. 7 - Prob. 2MCQ Ch. 7 - Prob. 3MCQ Ch. 7 - Prob. 4MCQ Ch. 7 - Prob. 5MCQ Ch. 7 - Prob. 1DQ Ch. 7 - Prob. 2DQ Ch. 7 - Prob. 3DQ Ch. 7 - Prob. 4DQ Ch. 7 - Prob. 5DQ

Solution Summary: The author explains that note receivables are written documents stating the amount and the terms of debt, which reduces the risk of default by the debtor.

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