[PDF] redevance note complémt

What is a discount on notes receivable?

A discount on notes receivable arises when the present value of the payments to be received from a note are less than its face amount. The difference between the two values is the amount of the discount. This difference is gradually amortized over the remaining life of the note, with the offset going to interest revenue.

What is a Remittance Advice Note?

A remittance advice note is also sometimes referred to as a remittance invoice, payment remittance, or remittance notice. Since most invoices are now paid online, a remittance advice document is not typically required, nor is it often expected. In fact, these notes are becoming less frequent as digital payment methods increase.

What is the debit balance for note receivable in January?

Note receivable in January has a debit balance of $200,000 that represents the original amount of the note. At the end of the year, we posted $4,055.56 to interest receivable when we recognized the amount of revenue earned for October through December.