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lets look at some example journal entries for notes receivables so we have five transactions here for vance company that we need to prepare the journal entries for so lets look at this first one on march 1st we loaned a hundred thousand dollars to sharp company on a three month eight percent note meaning we are giving sharp company one hundred thousand dollars theyre supposed to pay us back within three months and there will be eight percent interest but here just on march first how do we record that well we want to debit notes receivable to show that notes receivable is increasing and we want to credit our cash showing that we are giving 100 000 to sharp company now on may 1st we loaned fifty thousand dollars to harper company on a nine month nine percent note so the framework of the entry is going to be similar to what we just did back on march 1st here we debit our notes receivable for 50 000 since were only loaning 50 000 and we credit our cash for that same amount now june 1st