deleting untitled folder from Favorites bookmark

Somehow my Macbook Favorites bookmark separated so that anything I now bookmark as favorite goes into a an untitled folder directly below Favorties instead of going into Favorites. How can I delete this untitled folder so there is only Favorites and all my bookmarks go there instead of into untitled folder. I tried left and right clicking on the untitled folder, but there are no options. I can only double click it to open it.

Another issue I'm having is the documents or images I save onto my desktop don't open when I click on them. They use to open. Now, I have to click on them a few times in the desktop and it usally only opens the first document or image I click on. Then, i 'd have to restart my computer if I wanted to open up another document or image by double clicking it on the desktop. Since I have a lot of documents and images saved on my desktop (due to some glitch that came with this new Macbook a couple years ago in which it's hard to find documents in the Documents folder so I just save everythign to the desktop.