Notes Receivable on Balance Sheet is a financial asset in the form of a recordable promise to collect money that is owed to a business. It is an accounting entry that reflects a loan, debt or other amount of money due and payable to the business. It can also include payments-in-kind – such as goods or services bought through a payment plan. Notes receivable are typically recorded in the current liabilities section of the balance sheet, where they can be monitored until they become due and then collected by the company. By tracking notes receivable on the balance sheet, businesses can maintain accurate records of their receivables and accurately project future cash flows from this source.