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debit note payable: The seller sends a debit note,
as if it were a new invoice or an additional invoice.
debit note receivable: it is the seller who sends a debit note,
as if it were a new invoice; The buyer receives a debit note
as if it were an additional purchase
Debiting notes receivable means increasing your assets by getting future collection debiting
payable reducing your liability.
debt note transaction in A/P module : decrease vendor account
debt note transaction in A/R module : increase customer account
Receivables and payables (contractual rights to receive or pay money at a fixed or determinable rate
it must be recorded at present value at the date of issuance. If a note is non-interest bearing or
the interest rate is unreasonable (usually below market), the value of the note must be determined
by imputing the market rate of the note and by using the effective interest method.
Many of these rules apply when notes are exchanged for goods and services and the interest rate
varies from the prevailing interest rates. Notes must be recorded at present value so that income or loss for the period is not distorted
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