Is note receivable is a credit or debit?

Answer 1

A note receivable would be set up when a company lends money to another entity with the promise to pay back the amount at a later date (and normally to make scheduled interest payments).

Since this account is an asset account, setting it up would be a Debit entry to the account. The entry would be:

Debit Notes receivable

Credit Cash

This represents an increase to notes receivable (an asset account), and a decrease to cash (also asset) reflecting the outflow of cash to the entity that is borrowing the funds.