Bear Inc. issues a $600 million, 6-year note on June 30, 2021 that is payable in annual installments of $100 million. How should Bear Inc. report the note payable on the Balance Sheet for the year-end 2021? O $600 million current liability O $500 million current liability and $100 million long-term liability O $600 million long-term liability O $100 million current liability and $500 million long-term liability
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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