Prepare entries in general journal form to record the following:

June 12 Sold merchandise on account to K. M. Free; terms 2/10, n/30;

$1,640.

July 12 Received $380 in cash from K. M. Free and a 60-day, 10 percent note for $1,260, dated July 12.

Aug. 17 Discounted the note at the bank at 9 percent.

P.O. 1a,f journalize a sale on account, settle¬

ment of the account with a note, and discount of the note at the bank.