Chapter 8, Problem 12Q

To determine

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, a borrower to the lender or, creditor. Notes receivable is an asset of a business.

To describe: The available options to the lender, when Company C dishonors a note at maturity.