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.Central's journal entry on March 21 would include a debit to:

Question

Quizplus · Accepted Answer

Western Company paid $5,000 less the 2% discount ($5,000 x 2% = $100), so they paid $4,900. Therefore, Central Company would debit Cash for $4,900.

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