On July $1,2024,$ a company acquired equipment. The company paid $$195,000$ in cash on July $1,2024,$ and signed a $$780,000$ noninterest$-$bearing note for the remaining balance, which is due on July $1,2025.$ An interest rate of $7\%$ reflects the time value of money for this type of loan agreement. $($PV of $$1,$ PVA of $$1)$

Which of the following should be included in the journal entry on July $1,2024?$

Note: Round intermediate and final answer to nearest whole dollar amount.

Multiple Choice

Credit Notes payable, $$728,972.$

Debit Equipment, $$975,000.$

Credit Notes payable, $$728,972$ and Debit Discount on notes payable, $$51,028.$

Debit Discount on notes payable, $$51,028.$