The entry to record the dishonor of a note receivable assuming the payee expects eventual collection includes a debit to

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When a note receivable is dishonored and the payee expects eventual collection, the entry includes debiting Accounts Receivable to record the amount expected to be collected in the future. This moves the balance from Notes Receivable, indicating the shift from a formal note back to a regular receivable.

The Entry to Record the Dishonor of a Note Receivable