The correct entry to make when a note is paid at maturity depends on whether the note is interest bearing or non-interest bearing.

Question

Quizplus · Accepted Answer

This statement is true. The correct entry to make when a note is paid at maturity will differ depending on whether the note is interest-bearing or non-interest bearing. The accounting treatment for these two types of notes will be different.

The Correct Entry to Make When a Note Is Paid