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1. D. Stoner Co., a building construction company, holds a 120-day, 9% note for $60,000, dated August 7, which was received from a customer on account. On October 6, the note is discounted at the bank at the rate of 12%.
a. Determine the number of days in the discount period.
b. Determine the amount of the discount.
c. Determine the amount of the proceeds.
d. Journalize the entry to record the discounting of the note on October 6.
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