Mobilee Oil Company accepted a $10,000, 120 day note dated March 3 at 8 1/2% to settle a past due account receivable. Mobilee Oil discounted the note to raise cash on May 10, at a discounted rate of 9%. What proceeds did Mobilee Oil recieve? Use ordinary interest.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...
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Mobilee Oil Company accepted a $10,000, 120 day note dated March 3 at 8 1/2% to settle a past due account receivable. Mobilee Oil discounted the note to raise cash on May 10, at a discounted rate of 9%. What proceeds did Mobilee Oil recieve? Use ordinary interest.

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