The collection of a note receivable is accounted for like the collection of an account receivable.

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Both note receivables and account receivables represent money owed to a company by a customer. When the payment is received, it is recorded as a decrease in the corresponding receivable account and an increase in cash. Therefore, the collection of a note receivable is accounted for in the same way as the collection of an account receivable.

The Collection of a Note Receivable Is Accounted for Like