When collection of the account receivable is expected

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Reference no: EM131511101

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. Alamo’s 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

Reference no: EM131511101

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