A maker and a payee record the same note, respectively, as a:

Question

Quizplus · Accepted Answer

When a maker issues a note, it is a note payable to the payee. When the payee receives the note, it is recorded as a note receivable in their books. Therefore, the maker records the note as a note payable, and the payee records the note as a note receivable. Options A and B are incorrect as both cannot be recorded as note receivable, while Option D is incorrect as both cannot be recorded as note payable.

A Maker and a Payee Record the Same Note, Respectively