Chapter 9, Problem 18Q

To determine

Accounts receivable:

Accounts receivable can be defined as the amounts which customers owe to an organization. Accounts receivable are the results of sale of goods or services. Usually accounts receivable are collected within a time period of 30 to 60 days.

Notes receivable:

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. Both accounts receivables and note receivables are the results of sales transactions.

To determine: The method by which the receivables are reported on the balance sheet.