Central Company sold goods for $5,000 to Western Company on March 12 on credit.Terms of the sale were 2/10,n/30.At the time of the sale,Central recorded the transaction by debiting accounts receivable for $5,000 and crediting sales revenue for $5,000.Western paid the balance due,less the discount,on March 21.To record the March 21 transaction,Central would debit:

Question

Quizplus · Accepted Answer

Central Company would debit Cash for $4,900, which is the amount received after the 2% discount ($5,000 x 0.98 = $4,900).

Central Company Sold Goods for $5,000 to Western Company on March