A dishonoured note receivable that is expected to be collected should be

Question

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If a dishonoured note receivable is expected to be collected, it should be transferred to an accounts receivable by the payee so that it is recorded as a current asset on the balance sheet. Writing it off as uncollectible would be incorrect as it is expected to be collected. Carrying it as a long-term asset would be incorrect as it is not a long-term receivable. Presenting it under the heading "dishonoured notes" would not be appropriate as it does not accurately reflect the nature of the receivable.

A Dishonoured Note Receivable That Is Expected to Be Collected