Domain Settings Private Server

Hi, I think this should be an easy fix, but I am not sure so any help appreciated.

Right now my domain and every page shows up as

http://www.mydomain/wordpress/

This is probably because I have both the WordPress address (URL) and Site Address (URL)set to . . mydomain/wordpress

In other words, in Settings I have

WordPress Address (URL) http://www.mydomain/wordpress
Site Address (URL)http://www.mydomain/wordpress

The site is in a directory on the server named WordPress

How do I enter these settings correctly so the domain is aligned with the right directory on the server (i.e. wordpress), but get rid of /wordpress/ after my domain on the site?

Should it be
WordPress Address (URL) http://www.mydomain/wordpress
Site Address (URL)http://www.mydomain

?

I tried it differently (not as above) and lost access to the site entirely and had to fix it through FTP, so just trying to avoid doing that again.

Lastly, do the domain DNS settings have to specify IP/wordpress? Or just the IP and the server will figure it out

Thanks for your help ahead of time.