How to Do a Journal Entry for Purchases on a Notes Payable. Unlike an accounts payable debt, a notes payable debt is backed by a promissory note such as a loan agreement or other contract.

So, the initial journal entry for the sale of the above-mentioned furniture is a debit to Notes Receivable and a credit to Sales. This shows that the sale took place and the amount that is being ...

The financial solution that’s right for an equipment purchase isn’t necessarily the one a business should use to infuse cash into the accounts receivable department. Kansas City Business Journal.