Accounting Dictionary - Letter P

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Promissory note
is a formal unconditional written promise to pay a stated amount upon demand or at a future date. The debtor (i.e., borrower) of a promissory note is called the maker of the note. The creditor of a promissory note is called the payee of the note. The maker of the note recognizes a note payable while the payee of the note records a note receivable.
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