Chapter 7: Accounting for Receivables Accounting for Notes Receivables. Fornell Private Investigators, Inc., borrows $100,000 from Gibbs, Inc. on August 1, 2018, by signing a one-year note with 6% interest payable upon maturity. 1) How should the note be reported on Gibbs, Inc.'s balance sheet on December 31, 2018? 2) Record the loan on Gibbs' books on August 1, 2018. 3) Record the adjustment to Gibbs' books that is necessary on December 31, 2018. 4) Record the payment of the loan on Gibbs' books on July 31, 2019