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Alamo Hospice borrows $10,000 from the bank to make up for a lag in cash flow due to non-collection of a large account receivable. The
Alamo Hospice borrows $10,000 from the bank to make up for a lag in cash flow due to non-collection of a large account receivable. The loan is to be repaid at the end of ninety days, when collection of the account receivable is expected. Alamos loan is classified as:
A. An accounts receivable reserve
B. An accounts payable debit
C. A short-term note payable
D. None of the above
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