Mobilee Oil Company accepted a $10,000, 120-day note, dated March 3, at 8.5% to settle a past due accounts receivable. Mobilee Oil discounted the note to raise cash on May 10 at a discounted rate of 9%. What proceeds did Mobilee Oil receive?

To calculate the proceeds that Mobilee Oil received from discounting the note, we need to determine the discounted value of the note.

Step 1: Calculate the maturity date of the note.
The note was dated on March 3, so we need to add 120 days to determine the maturity date.
March 3 + 120 days = July 1

Step 2: Calculate the time between the discount date and the maturity date.
The note was discounted on May 10, so we need to calculate the number of days between May 10 and July 1.
July 1 - May 10 = 52 days

Step 3: Calculate the discount rate.
The note was discounted at a rate of 9%.

Step 4: Calculate the discount amount.
Discount = Face value of the note * Discount rate * Time
Discount = $10,000 * 9% * (52/360) (Using 360 days as the basis for a year in commercial calculations)
Discount = $1,300

Step 5: Calculate the proceeds.
Proceeds = Face value of the note - Discount amount
Proceeds = $10,000 - $1,300
Proceeds = $8,700

Therefore, Mobilee Oil received $8,700 as proceeds from discounting the note.

To find the proceeds that Mobilee Oil received from discounting the note, we need to calculate the discounted value of the note.

The formula to calculate the discounted value is:

Discounted Value = Face Value of Note * (1 - Discount Rate * Discount Period)

Discount Period is the time between the discount date (May 10) and the maturity date of the note (120 days after March 3).

First, we need to find the Discount Period:
Discount Period = Maturity Date - Discount Date

The Maturity Date is 120 days after March 3. To find the Maturity Date, we add 120 days to March 3:

Maturity Date = March 3 + 120 days = July 1

Next, we calculate the Discount Period:
Discount Period = July 1 - May 10

Now, plug the values into the formula:

Discounted Value = $10,000 * (1 - 9% * (July 1 - May 10))

Make sure to convert the discount rate to decimal form (9% = 0.09) and calculate the number of days for the Discount Period.

Finally, calculate the Discounted Value:

Discounted Value = $10,000 * (1 - 0.09 * (21 days))

To calculate the number of days from May 10 to July 1, you need to count each calendar day, including weekends and holidays.

Calculate the Discounted Value for the given dates and discount rate to find out the amount of proceeds Mobilee Oil received.