Note receivable: Promissory notes are written promises to pay a specific amount along with stated interest. Promissory notes are used in many transactions. Sellers prefer notes when the credit period is too long or receivable is a large amount. The journal entry assumes the note is honored on October 31 of the same year.

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Chapter 9, Problem 14QS

To determine

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Note receivable: Promissory notes are written promises to pay a specific amount along with stated interest. Promissory notes are used in many transactions. Sellers prefer notes when the credit period is too long or receivable is a large amount.

The journal entry assumes the note is honored on October 31 of the same year.

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