Definition: Notes receivables are written promissory notes which give the holder or bearer the right to receive the amount mentioned in the agreement. It is treated as an asset by the holder of the note receivable. Sometimes accounts receivables are converted into...
Definition: Notes receivables describe promissory notes that represent loans paid from a company or business to another party. The note comes with a promise from the borrower that it will repay the lender at a future point in time. Similarly, a note receivable gives...
What is it? When a company makes sales, it doesn’t collect cash from all the customers. Some customers pay at the time of purchase itself and some pay on credit terms. When customers fail to pay on the due date and the company assumes that the money can’t be...
Introduction Bad debts are unavoidable for companies. Any company that offers credit sales will also have bad debts associated with them. It is because when a company offers credit sales, it accumulates accounts receivables. Accounts receivables are a group of...
What is bad debt? When a company sells products to its customers, it can either collect the payment or allow the customer to pay at a later date. In the case of credit sales, the company must record the sale and the associated receivable balance. When the...
Meaning of Other receivables Other receivables generally come with the headings “Trade receivables and others” in the financial statement of large listed public companies. Other receivables are disclosed under the headings “Current Assets” in the balance sheet of the...
