NAC706.401948. Current assets: Account for notes receivable.

     1. The account for notes receivable must include the book cost, not includable elsewhere, of all collectible obligations in the form of notes, drafts and similar evidences of money due the company.

     2. Complete information must be maintained in the account for each note, including, without limitation, the maker of the note, payor, payee, date of issuance, date of maturity, interest rate and penalties. This information must clearly indicate the amounts due from each person or company.

     3. The face amount of notes receivable discounted, sold or transferred without releasing the company as endorser must be credited to a separate subdivision of the account, and appropriate disclosure must be made in financial statements of any contingent liability arising from such transactions.

     (Added to NAC by Transportation Serv. Auth. by R040-02, eff. 9-20-2002)