Chapter 14 Notes Receivable（课件）-《实用会计英语》同步教学（大连理工大学出版社）

NOTES RECEIVABLE CHAPTER 14 14-1 2 2 Notes receivable Credit sale: durable goods of high value Promissory note 14-1 Promissory Notes Accounts Receivable Formal Notes Receivable A promissory note is an unconditional promise to pay a definite sum of money on demand or at a future date. Promissory note 14-1 3 3 Promissory Notes Maker The person who signs the note and thereby promises to pay Payee The person to whom payment is to be made 14-1 Promissory Notes $1200 Wheaton, Illinois January 5, 1999 Sixty days after date I promise to pay to the order of Yankee Brothers, Inc. One thousand two hundred --------------------------------- Dollars Payable at Wheaton Mountain Bank Value received with interest at per annum No. Due The Kitchen Taylor 42 March 6, 1999 12% Dennis Taylor 14-1 Promissory Notes $1200 Wheaton, Illinois January 5, 1999 Sixty days after date I promise to pay to the order of Yankee Brothers, Inc. One thousand two hundred --------------------------------- Dollars Payable at Wheaton Mountain Bank Value received with interest at per annum No. Due The Kitchen Taylor 42 March 6, 1999 12% Dennis Taylor Term Payee Maker Due Date Interest Rate Principal 14-1 Maturity date The maturity date can be calculated according to the following three methods : 1. a specific date, such as “November 11th, 2006” 2. a specific number of months after the date of the note, such as “2 months after date” 3. a specific number of days after the date of the note, for example, “60 days after date” 14-1 Determining the maturity date Life of the note expressed in terms of months -- the due date is found by counting the months from the date of issue Example: If a note is issued on April 20th that will be due in three months, the note will be due on July 20th in the same year. 14-1 Determining the maturity date Life of the note is expressed in terms of days --you need to count the days --includ