For legal reasons, it is always a good business practice to accept a note receivable in exchange for an overdue account receivable.

Question

Quizplus · Accepted Answer

Accepting a note receivable in exchange for an overdue account receivable helps to legally document the debt and provide a written agreement for the terms of repayment. This can protect the business in the event of any legal disputes or collection efforts.

For Legal Reasons, It Is Always a Good Business Practice