A company owes $200,000 on a bank loan.If this loan is documented using a formal written debt contract,it will be reported as a liability called Notes Payable.

Name: A company owes $200,000 on a bank loan.If this loan is documented using a formal written debt contract,it will be reported as a liability called Notes Payable.
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Notes payable is a liability account that represents the amount owed on a formal written debt contract, such as a bank loan.

A Company Owes $200,000 on a Bank Loan