If the bills receivable received by the company cannot be paid by the other party after maturity, should they be converted into short-term loans? How to deal with accounting entries?

If the bills receivable received by the company cannot be paid by the other party after maturity, they should not be converted into short-term loans, but should be included in accounts receivable.

Bills receivable are divided into bank acceptance bills and commercial acceptance bills. Bank acceptance bills are not payable because they are paid by the bank after maturity. If it is a commercial acceptance bill, the enterprise can't pay it at maturity, and it is to convert the bills receivable into accounts receivable, not short-term loans.

When the issuing company is unable to pay, it will transfer the notes payable to the accounts payable, borrowing: notes payable and lending: accounts payable. The bill-receiving company transfers to accounts receivable due to the non-payment of the other party, debit: accounts receivable, and credit: bills receivable.

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Accounting: The bills payable received must be issued by the other company. Because the bank acceptance bill will not be unable to get the money in advance and discount it into the handling fee. When it is confirmed that it cannot be recorded, the notes payable will be converted into accounts receivable. Accounts payable will be aged regularly, so it is enough to deal with them regularly. Short-term loans belong to debts, while notes receivable belong to creditor's rights, which is quite different.

In practice, you can ask for compensation for inability to pay when the promise expires, which is the time value. The other party should not dare to cash it in the bank. This will also affect the credibility of the bank, and it will not be easy to draw an acceptance bill next time.

It is suggested to communicate with the other company, and the other company must know the stakes. For example, if you have a financial negotiation with the other party and don't go to the bank to cash it, the other company will temporarily pay half of the money, plus a little interest (the time value can't be ignored). If the bill issuing company should take the initiative to contact the supplier, otherwise there will be no money in the bank account and the consequences will be very serious.