Art Shoes
This company received a promissory note from a customer on July 1, 2019. The face amount of the note is $45,000; the terms are 12 months and 10% annual interest.
-Refer to Art Shoes. At the maturity date, the customer pays for the note and interest. The company made the proper adjustment at the end of December for interest. The effect of recognizing the transaction on the maturity date is

Question

Quizplus · Accepted Answer

The effect of recognizing the transaction on the maturity date is a decrease to Notes Receivable because the customer pays off the note and interest, thus settling the receivable.

Art Shoes This Company Received a Promissory Note from a Customer on Customer