On December 1, year 1, Hendry Corporation sold an unused warehouse to Moran Industries for $100,000. Hendry accepted a 6-month, $100,000, 6 percent note receivable from Moran. The note, plus accrued interest, is due in full on May 31, year 2. Hendry Corporation adjusts for accrued interest revenue monthly.

Prepare the adjusting entry necessary to account for the note receivable from Moran Industries at December 31, year 1.

I understand that you would need to show accrued interest as well as interest revenue. How would you show the accepted notes receivable thought? Debit to notes receivable would need to be made, but what account would you credit?