Why this is mistaken
A note changes the legal instrument and perhaps cash flows. Reassess recognition, yield, and expected collection; do not treat paperwork as cash.
Where to watch
When this mistake may appear
- The customer signed a note.
- The debt was restructured.
Check your work
Your work may contain this mistake if:
- Reverses allowance at modification.
- Records new revenue.
- Ignores borrower condition and modified cash flows.