The notes receivable were accepted from several customers. The notes were issued on sept. 1,2014 and will be settled together with a 20% interest on may 31,2015.

Notes receivable:360 000

For the adjusting entry you need to compute the amount of interest that is due. So if this is at year end on 31 Dec you have to calculate 4 months of interest.

The formula to calculate interest is: Interest = Principal * Rate * Time

$360,000 * 20% * 4/12 = Interest Earned

The accounts used for this adjusting entry will be Interest Revenue and Interest Receivable