Chap 09 Lecture: Notes Receivable and Interest

This lecture covers notes receivable and interest revenue including the following: 1) Why notes instead of accounts receivable? 2) 6%, 60-day method for determining interest, 3) calculation of interest, and 4) determination of time period of note when stated in days and when stated in months. A exercise illustrates acquiring notes receivable, calculations for accruing interest before financial statement preparation, and receipt of the cash in payment of a note at maturity.