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What is the distinguishing characteristic between accounts receivable and notes receivable?
a. Notes receivable generally specify an interest rate and a maturity date at which any interest and principle must be repaid.
b. Accounts receivable are usually current assets while notes receivable are usually long-term
c. Accounts receivable require payment of interest while notes receivable does not have payment of interest.
d. Notes receivable result from credit sale transactions for merchandising companies, while accounts receivable result from credit sale transactions for service companies.
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