Sheffield Company loaned $83,306 to Hemingway, Inc, accepting Hemingway's 2-year, $100,800, zero-interest-bearing note. The implied interest rate is 10%. Prepare Sheffield's journal entries for the initial transaction, recognition of interest each year, and the collection of $100,800 at maturity.

Account Titles and Explanation Debit Credit Notes Receivable 100800 Discount on Notes Receivable 17494 Cash 83306 (To record the receipt of the note at a discount.) Discount on Notes Receivable 8331 Interest Revenue 8331 (To record the interest revenue at the end of 1st year.) (To record the interest revenue at the end of 2nd year.) (To record receipt of notes.)