Some companies find that offering incentives to credit customers can help encourage early payments, increasing cash flow and reducing the risk of bad debt. A sales discount is one incentive that many ...

Notes receivable refers to legal instrument claims for which credit has been issued as evidence of debt, such as with a promissory note. Credit instruments usually require debtors to pay interest and ...

Calculate interest for notes using a 360-day year for accuracy. Record interest revenue as it accrues, before actual cash is received. Adjust entries for accrued interest to match revenue recognition ...