1. Please describe the difference between an accounts receivable and a notes receivable. 2. There are times...

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Accounting

1. Please describe the difference between an accounts receivableand a notes receivable.
2. There are times when businesses cannot collect the money thatis owed to them by their customers. When this happens, businessesincur an expense. There are two methods for recording uncollectiblereceivables. They are the allowance method and the direct write offmethod. Please explain the difference between these twomethods.
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Solution 1 The difference between the accounts receivable and notes receivable The account receivable is the funds owned by the customers where as note receivable is a written promise by supplier agreeing to pay a sum of money in future The company and will be recorded as assets in the statement of financial positionAccounts receivable and not receivable play an important role in deciding the liquidity position in the company The notes receivable See Answer

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