If the maker of a note does NOT pay at maturity,________.
A) the debtor no longer owes the payee
B) interest revenue cannot be accrued on the note before the maturity date
C) the note is no longer in force because it has expired
D) the Accounts Receivable account increases for the amount of the note's principal only

Question

Quizplus · Accepted Answer

If the maker of a note does not pay at maturity, the note is considered to be in default and it is no longer in force because it has expired. The payee may take legal action to collect the amount due or the payee may write off the uncollectible amount as bad debt.

If the Maker of a Note Does NOT Pay at Maturity,________