Analysis of Notes Receivable in Company X

Abstract

The main factor that influences the continuity of a business is sales, so that sales play the most important role in determining the progress of the company. The current trend is that credit sales are more attractive to consumers than cash sales. For companies with sales on credit will cause receivables, receivables include all activities both in the form of individuals, business entities or others.Receivables are one of the important instruments in the management of the company. The amount of the receivables greatly affects the company's performance, because for many companies, income from the sale of goods or services on credit is the largest element that affects the profits earned by the company.Overdue accounts receivable are sometimes converted into notes receivable, thereby giving the debtor more time to pay, while also sometimes including a personal guarantee by the owner of the debtor. Through the methods of observation, interviews, and literature, the authors evaluate the credit sales procedures that occur, record notes receivable accounting, report the preparation of notes receivable reports and analyze the obstacles that occur that affect the receivables management process.