If the amount of a note receivable is not collected at maturity, the accountant should debit Uncollectible Accounts Expense and credit Notes Receivable.

Question

Quizplus · Accepted Answer

When a note receivable is not collected at maturity, the correct accounting treatment is to debit Notes Receivable and credit Accounts Receivable or a specific allowance account, not Uncollectible Accounts Expense directly. Uncollectible Accounts Expense is typically recognized through adjusting entries for estimated bad debts, not at the specific point of a note's maturity failure.

If the Amount of a Note Receivable Is Not Collected