Question

What is the difference between accounts receivable and notes receivable?

Short answer

Answer

Notes receivables are long-term payments made under a contract over an extended period with interest. Accounts receivable is the amount of sales for which payment is due from the customer.

Step-by-step solution

Meaning of Account receivables

Planning and managing obligation owing to the client on account of credit deals are alluded to as account receivables.

Difference between accounts receivable and notes receivable

The right to receive money from consumers in the future in exchange for products sold or services rendered is represented by accounts receivable. Receivables are typically collected in a limited amount, like 30 or 60 days. Accounts receivable typically have shorter terms than notes receivable. Notes receivable are evidence of a borrower's written promise to pay a particular principal plus interest by a specific date in the future.