|
GAFB
Join Date: Dec 1999
Location: Raleigh, NC, USA
Posts: 7,842
|
Your analogy fails - it IS booked as a receivable. If I sell you a widget on 30 day terms, I record revenue upon shipment and a receivable. So the bank is doing the same thing, but with interest. In other industries (I don't deal with banks frequently) adding the interest onto the principal is called accretion.
I am not sure why you would take exception to this unless the balance was not collectible - in which case you'd want to see some kind of reserve against the receivables.
__________________
Several BMWs
|