If a promissory note is dishonored,the payee should record interest income.

Name: If a promissory note is dishonored,the payee should record interest income.
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When a promissory note is dishonored, the payee should record interest income as they were legally entitled to receive interest on the amount of the promissory note until it was dishonored. This interest income should be recorded as a separate income account in the payee's books.

If a Promissory Note Is Dishonored,the Payee Should Record Interest