A note receivable journal entry is a financial transaction that records the value of an instrument issued by or collected on behalf of a company. These instruments, also known as promissory notes, are typically used to collect short-term loans or credits related to a business activity. When recording a note receivable in a journal entry, the account debited will usually be cash and the account credited could be either accounts receivable if it is issued for a sale of goods or services, or it may be simply labeled ‘notes receivable’ if the note corresponds with either a loan to or from a third party. Both the debits and credits should include any interest payable due on the date of the journal entry.