Collection of a Note Receivable Will Result in a Credit

question 15

Short Answer

Collection of a note receivable will result in a credit to ______________ for the face value of the note and a credit to ______________.

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Definitions:

Interest Rate

The ratio of interest charged on a loan to the borrower, usually represented as a yearly percentage of the remaining loan amount.

Compound Interest

Calculating interest that includes both the original principal amount and all previously accumulated interest on a loan or deposit.

Simple Interest

The method of calculating interest charges based on the principal amount only, not compounding on accumulated interest.

Deposit

A sum of money placed into a bank account or given as security for a contractual obligation.