Promissory note definition
The cash amount in fact represents the present value of the notes payable and the interest included is referred to as the discount on notes payable. The debit is to
The cash amount in fact represents the present value of the notes payable and the interest included is referred to as the discount on notes payable. The debit is to
For example, if you purchase a piece of equipment with cash, the two transactions are recorded in a journal entry. You will have to decrease the cash account and the increase the