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 trade receivables 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 which of the following?
A) Cash for $4,900.
B) Trade receivables for $4,900.
C) Cash for $5,000.
D) Trade receivables for $5,000.
Correct Answer:
Verified
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