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Accounts receivable resulting from sales are referred to as trade receivables in Alcatel's financial statements.
B. How do accounts receivable differ from notes receivable?
Notes receivable represent claims for which formal instruments of credit are issued as evidence of debt. A credit instrument normally requires a debtor to pay interest and extends for time periods of 60 to 90 days or longer. Notes receivable differ from accounts receivable due to the fact that notes receivable are secured by promissory notes and not through accounts. Notes receivable also requires the debtor to pay interest...
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