What is the primary difference between notes receivable and accounts receivable?

What is the primary difference between notes receivable and accounts receivable?

Notes receivable involve longer$-$term contracts and often include interest payments, while accounts receivable typically involve shorter$-$term transactions without interest.

Notes receivable represent short$-$term debts owed to the company, while accounts receivable represent sales transactions made on credit.

Notes receivable are recorded on the balance sheet as current assets, while accounts receivable are recorded on the income statement as revenue.

Notes receivable are informal agreements with customers, while accounts receivable are formal contracts with established payment terms.