How do we record interest earned but not yet collected

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Reference no: EM131520209

Question: 1. With respect to notes receivable, explain what each of these represent:

(a) face value,

(b) annual interest rate, and

2. What will be the total interest earned on a 6%, $2,000 note receivable that is due in nine months?

3. Interest on a note receivable typically is due along with the face value at the note's maturity date. If the end of the accounting period occurs before the maturity date, how do we record interest earned but not yet collected?

Reference no: EM131520209

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