Notes Receivable is a form of financial instrument used to track money owed from one party to another. They are written promises from the debtor to repay a certain sum of money on or before an agreed-upon date and with interest, if applicable. Notes Receivable provide evidence of the transaction, including loan terms and other important information – such as how many payments will be made and when each payment is due. They can be used to document short-term borrowings or other credit transactions, and serve as an efficient way to provide reliable records and support for an organization’s audited financial statements.
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