INTERMEDIATE ACCOUNTING

Chapter 4
Trades Receivables – claims arising from sale of merchandise or services in the ordinary course of business.

It includes:

Accounts Receivables – open accounts arising from the sale of goods and services in the ordinary course of business and
not supported by promissory notes. (Other names: Customers’ accounts, trade debtors, and trade accounts receivable)

Notes Receivables – supported by formal promises to pay in the form of notes.

Nontrade Receivables – claims arising from sources other than the sale of merchandise or services in the ordinary course
of business.