Suppose a customer is unable to pay its account on time,so the company accepts a six-month interest-bearing note receivable to replace the customer's account receivable.What effect will accepting the note receivable have on the company's financial statements at the time of acceptance?

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Accepting a note receivable in exchange for an account receivable simply changes the composition of the company's assets without altering the total amount of assets. The account receivable (an asset) is replaced by a note receivable (also an asset), keeping the total assets unchanged.

Suppose a Customer Is Unable to Pay Its Account on Time,so