Issuance of a note by the issuer is recorded by crediting the Cash account and debiting the Note Receivable account.

Name: Issuance of a note by the issuer is recorded by crediting the Cash account and debiting the Note Receivable account.
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Question

Quizplus · Accepted Answer

When a note is issued, the issuer receives cash, so the Cash account is debited, and a liability account, such as Notes Payable, is credited, not Note Receivable.

Issuance of a Note by the Issuer Is Recorded by Crediting