discounting notes receivable

discounting notes receivable　应付票据贴现　

just as accounts receivable can be factored，notes can be converted into cash by selling them to a financial institution at a discount.Notes are usually sold（discounted）with recourse，which means the company discounting the note agrees to pay the financial institution if the maker dishonors the note.When notes receivable are sold with recourse，the company has a contingent liability that must be disclosed in the notes accompanying the financial statements.A contingent liability is an obligation to pay an amount in the future，if and when an uncertain event occurs.