On December 1, 2011, Barnes Company received a $10,000, 60-day, 6% note from a customer. On December 31, 2011, the company discounted the note at the bank. The bank's discount rate is 9%. What were the proceeds that Barnes received from the discounting of the note?

Question

Quizplus · Accepted Answer

The proceeds from discounting the note can be calculated as follows:Proceeds = Face value of the note - DiscountDiscount = Face value of the note * Discount rate * TimeDiscount = $10,000 * 9% * 60/360Discount = $150Proceeds = $10,000 - $150Proceeds = $9,850Therefore, the proceeds that Barnes received from the discounting of the note are $9,850.

On December 1, 2011, Barnes Company Received a $10,000, 60-Day