On May 16, 20X1, Safeway Company received a 90-day, 8 percent, $9,000 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 13 percent. On August 14, 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, 20X1, how should Notes ReceivableDiscounted be presented on the statement?

Journal entry worksheet Record entry for a 90 -day, 8% note accepted for past-due account. Note: Enter debits before credits. Journal entry worksheet Record the entry for discounting the 90 -day note at 13% Note: Enter debits before credits. Journal entry worksheet Record payment of discounted note receivable. Note: Enter debits before credits. If the company prepared a balance sheet on July 31,201, how should Notes Receivable-Discounted be presented statement