When a note is payable in installments,the installments must be separately recorded in two different accounts-Short-term notes payable and Long-term notes payable-depending on the due dates of the installments.

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Quizplus · Accepted Answer

This is true because the installments will have different due dates, and therefore will be classified as either short-term or long-term depending on when they are due. Separately recording them allows for accurate tracking and reporting of the company's liabilities.

When a Note Is Payable in Installments,the Installments Must Be