When a company receives or accepts an interest-bearing note receivable, it will credit Notes Receivable for the maturity value of the note. debit Notes Receivable for the face value of the note. debit Notes Receivable for the maturity value of the note. credit Notes Receivable for the face value of the note.

When a company receive or accepts an interest bearing note receivable, it involves following two accounts :

Note receivable and cash.

Total assets incease in the form of note receivable and thus note receivable will be debited.

Assets secrease in the form of cash, thus cash will be credited.

Thus, second option is the correct option.i.e. Debit note receivable for the face value of the note.

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