Overview

This module will cover Notes Receives. Notes receivable are different from accounts receivable in that notes most often involve a stated interest rate (or an implied rate). This means we'll need to account not only for the note receivable but the interest receivable as well. This model will also cover a commonly technique by many companies to finance their operations by selling their accounts receivable and notes receivables.

Learning objective

This week, our activities, content, and assignments will help you to be able to do the following:

LO7-7: Describe the accounting treatment of notes receivable.
LO7-8: Differentiate between the use of receivables in financing arrangements accounted for as a secured borrowing and those accounted for as a sale.

Weekly roadmap

Here's everything you need to do and remember for the week.

Before Class:

Read the assigned text
Complete the Concept Overview Video (COV) assignment by class time
Complete the SmartBook assignment by class time

During Class:

Attend the live session and be ready to interact, ask questions, and work on some portions of the homework (or watch the recording of the session)
Complete the group quiz (if time allows for one to be given)

After Class:

Complete the homework by Sunday night
Complete the exam by the following Tuesday