A journal entry for a note receivable is an accounting term used to describe the bookkeeping process of recording a loan that has been made by an individual or business. When a loan is made, the creditor will provide the debtor with a note, which serves as written evidence of the transaction and outlines the terms and conditions of the agreement. The journal entry is an accounting document that records this loan, which includes the principal amount, any interest owed, and the length of time it must be repaid. Additionally, it also records the various types of accounts (assets, liabilities, equity) affected by the loan. This journal entry can provide financial institutions with invaluable insight into a company’s finances and help them determine creditworthiness.