On January 15, 2011, Raymond Company received a two-month, 9%, $5,000 note from William Pentel for the settlement of his open account.The entry by Raymond Company on January 15, 2011 would include a:

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The entry by Raymond Company on January 15, 2011 would debit Notes Receivable for the amount of the note received, which is $5,000. The company is receiving a note from the customer, not paying the customer, so no credit to Accounts Receivable is recorded. The total amount of the note payable including interest is $5,000 + ($5,000 x 0.09 x 2/12) = $5,075, but this is not recorded as a debit to Notes Receivable at the time of issuance.

On January 15, 2011, Raymond Company Received a Two-Month, 9