The following notes receivable are held by the Rodriguez Company on January 1, 2019. On January 2, 2019, Rodriguez discounted all of these notes at First National Bank at a discount rate of 10 percent. Compute the net proceeds the firm received from discounting each note.

Analyze: How would Notes Receivable be shown on a balance sheet prepared on January 2, 2019, after the transactions above have been entered?

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Perlod 120 days Note No. 20 21 Date Face Amount Interest Rate Sept. 20, 2018 Sept. 10, 2018 Dec. 1, 2018 8% $15,000 20,000 25,000 6 months 120 days 22 12