Diloy, Erika Francess L.

BSA 31

NOTE

Note is a written document that contains a promise to repay a debt. It can

be classified as either payable or receivable. Notes payable are those prepared

by the maker while notes receivable are those received by the payee. A note has

the following components: the name of the payee, the name of the maker, the

date when it was written, the amount of money being borrowed, and the date of

payment. Note is payable in money only; it cannot be paid in goods or other

assets. However, a note can be transferred from the payee to another person or

entity. For example, person A has a note receivable from person B, then person

A borrowed money to person C, person A can transfer the note to person C as a

payment.