Create text with cutout through letter leaving cutout part transparent

Question

I need to create a logo. It's very basic but I cannot figure out how to achieve my desisred effect with Adobe Illustrator.

Like the image before, I need to have a part of the text cut out. I tried using a white rectangle and under pathfinder I used divide but that leaves me with the white rectangle attached still.

I need the part that is cut out to be transparent.

Answer 1

• Set the Text
• Type > Create Outlines
• Draw the rectangle
• Grab the Shape Builder Tool
• Hold down the Option/Alt key and click-drag across rectangle

Answer 2

Make sure the rectangle is behind the type (that has been converted to outlines). Then try the Pathfinder tool: Minus Back.