Note Receivable (Noun)
Meaning
Your right in a promissory note in which the maker promises to pay a certain amount of money at a certain time.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company recorded a note receivable for $100,000 when the customer signed a promissory note to pay the amount in 6 months.
- A note receivable is an asset account that represents the amount of money the business is owed by a customer or borrower.
- The note receivable was collateralized by the borrower's property, providing additional security for the lender.
- When the customer defaulted on the loan, the company had to write off the note receivable as a bad debt.
- The financial statements showed a significant increase in notes receivable, indicating that the company had extended more credit to its customers.