Accounts Receivable (AR) refers to the dollar amount owed by customers for products or services that were delivered in the past. It is a type of current asset on a company’s balance sheet. On the other hand, Notes Receivable is a promissory note created when a customer borrows money from a business. The principal amount borrowed and any interest due are recorded as liabilities on the company’s balance sheet until they have been reimbursed by the customer. AR and Notes Receivable are similar in terms of the money being due to the business, but they differ in the form of payment- AR is typically paid via cash or credit card, while Notes Receivable are typically paid through installment payments.