Accounting for Notes Receivable | Accounting How To | How to Pass Accounting Class

Accounting for Notes Receivable | Accounting How To is an accounting tutorial explaining what the purpose of a note receivable is, how to set up a new note receivable on the balance sheet, how to determine interest on notes receivable for full and partial months, and gives a step-by-step example of a note receivable from start to maturity with journal entries for each. This is an accounting tutorial for accounting students, business owners, and bookkeepers to explain accounting basics for beginners. Featuring Terrance the T-Account Rex and accounting educator, Caroline Grimm, this accounting tutorial is part of two playlist series: How to Pass Accounting Class and Accounting Basics for Business Owners. ⏰ Accounting How To Time Stamps: 00:00 Hilarious Accounting Humor 00:27 Introduction to Notes Receivable 01:03 Parts of a Note Receivable 01:54 New Accounts: Note Receivable, Interest Revenue, Interest Receivable 02:40 Journal Entries to record new note and payment of note 03:51 Example: Journal Entry for 60 day note 06:30 How to determine interest for partial months 07:18 Textbook alert 07:47 Example: Step-by-step entries for note receivable 10:05 Interest Receivable account and how it is used 10:29 Note payoff 11:39 Trading an accounts receivable account for a note receivable account 13:12 How to account for previous write offs of an accounts receivable