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Lincoln Glass Company sold goods for $5,000 to Olivia Company on March 12 on credit. Terms of the sale were 3/10, n/30. At the time
Lincoln Glass Company sold goods for $5,000 to Olivia Company on March 12 on credit. Terms of the sale were 3/10, n/30. At the time of the sale, Lincoln recorded the transaction by debiting accounts receivable for $5,000 and crediting sales revenue for $5,000 while Olivia debited Purchases for $5,000 and credited Accounts Payable for $5,000. Olivia paid the balance due, less the discount, on March 21. To record the March 21 transaction, Olivia would credit which of the following? Multiple Choice O Accounts payable for $4,850 O Accounts payable for $5,000 Cash for $4,850 O None of the other alternatives are correct O Cash for $5,000
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