When accruing interest on notes receivable that are outstanding at the end of the year, it is not necessary to do any proration.

Name: When accruing interest on notes receivable that are outstanding at the end of the year, it is not necessary to do any proration.
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Interest on notes receivable should be accrued for the period they are outstanding, including proration for partial periods, to accurately reflect the interest earned but not yet received by the end of the accounting period.

When Accruing Interest on Notes Receivable That Are Outstanding at the End