I’m working on a social science discussion question and need an explanation to help me study.
respond to david with 150 words
It is important to distinguish the difference in accounts receivable, notes receivables, and other receivables as discussed in Chapter 8 of our textbook. Account receivables is the amount owed by a customer on account that result from the sale of goods and services such as recognizing, valuing, and disposing of accounts receivables. Notes receivables is a written promise for amounts to be received, normally requires the collection of interest. Other receivables are nontrade receivables such as interest, loans to offices, advances to employees, and income taxes. When recording receivables these factors must be taken into consideration to be recorded in the appropriate category and must be classified as assets if it’s accounts receivable.
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