Journal entry question for owner financed note

[Robert L.]

I sold a house with owner financing.  Buyer put a down payment.

I am carrying a note for the balance which buyer is making monthly payments.  

How would you record the journal entries for this type of transaction in cash method of accounting with the following information and monthly payment?  I am not sure how to handle the note if it is cash method as note does not exist in cash method.

$10k down payment

$45K note

$13K accumulated depreciation

$29K cost of property

Thank you!

Rob

[Jake Hottenrott]

@Robert L. Congrats on selling the home and owner financing it! The cash method Vs accrual method refers to the income recognition portion of the accounting. You will still need to record the note, but will only recognize the interest income as you receive payment vs recognizing it on a schedule whether you receive the payment or not. Best of luck!