Question

Go over the following transactions and identify what type receivable would be increased—accounts receivable, a note receivable, or other receivables?

(1) The vice-president of manufacturing is sending his youngest child to a prestigious university and needs a loan of $25,000.

(2) A customer buys merchandise on account.

(3) A customer’s account receivable has been outstanding for some time and he is asked to sign a note for the amount of the balance

Answer 1