The journal entry to record lending money on a note receivable is:

Name: The journal entry to record lending money on a note receivable is:
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Question

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When lending money on a note receivable, you are giving credit to the borrower, which means that you are increasing the Notes Receivable account. At the same time, to balance the transaction, you are receiving cash, which means that the Cash account should also be affected. Therefore, you need to debit Notes Receivable and credit Cash.

The Journal Entry to Record Lending Money on a Note