A note receivable which is not collected promptly at the maturity date should be written off the books by a debit to Accounts Receivable and a credit to Notes Receivable.

Question

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This statement is true because when a note receivable is not collected on its maturity date, it becomes a bad debt and needs to be removed from the books. The amount of the note receivable is written off by debiting the Accounts Receivable account and crediting the Notes Receivable account.

A Note Receivable Which Is Not Collected Promptly at the Maturity