On May 16, 2019, Safeway Company received a 90-day, 8 percent, $7,800 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 13 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?

Complete this question by entering your answers in the tabs below. General Journal Analyze Prepare the entries in general journal form to record these transactions. (Use 360 days a year. Round your intermediate calculations and final answers to 2 decimal places.) View transaction list Journal entry worksheet