Promissory note: Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. It is a result of sales transactions. Promissory note gives the holder a stronger legal claim as compared to accounts receivable . It can easily be sold to another party and can be transferred to another party through endorsement, since they are negotiable instruments. A promissory note holder is also liable to earn interest. To determine: The different ways by which the maturity date of a promissory note can be stated.

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Chapter 9, Problem 13Q

To determine

Promissory note:

Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. It is a result of sales transactions.

Promissory note gives the holder a stronger legal claim as compared to accounts receivable. It can easily be sold to another party and can be transferred to another party through endorsement, since they are negotiable instruments. A promissory note holder is also liable to earn interest.

To determine: The different ways by which the maturity date of a promissory note can be stated.

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