On May 16, 2019, Safeway Company received a 90-day, 10 percent, $7,000 interest-bearing note from Black Company in settlement of Black's past-due account. On June 30, Safeway discounted this note at Fargo Bank and Trust. The bank charged a discount rate of 15 percent. On August 15, Safeway received a notice that Black had paid the note and the interest on the due date. Required: Prepare the entries in general journal form to record these transactions. Analyze: If the company prepared a balance sheet on July 31, 2019, how should Notes ReceivableDiscounted be presented on the statement?

No	Date	General Journal	Debit	Credit
1	May 16, 2019	Notes receivable	7,000.00
		Accounts receivable/Black Company		7,000.00
2	Jun 30, 2019
3	Aug 15, 2019

Safeway Company
Balance Sheet
July 31, 2019
Notes receivable	$
Less: Notes receivableDiscounted
	$