You are the owner of an accounting firm. Your client is Abbott Construction Company. The Controller for your client believes that it is appropriate to offset a note payable to Oregon Bank against an account receivable from Oregon Bank related to remodeling services provided to the bank. Abbott Construction Company is requesting guidance concerning the criteria to be met to allow such offsetting.

1. You need to research the topics using the FASB Accounting Standards Codification (FASB ASC).
2. Prepare a memo to your client explaining your reasoning. This must be in your own words.
3. Include Codification references, including Topic Subtopic Section Paragraph, to support your reasoning.