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Lots-a-Bits Company sold goods for $5,000 to a customer on March 12 on credit. Terms of the sale were 2/10, n/30. At the time
Lots-a-Bits Company sold goods for $5,000 to a customer on March 12 on credit. Terms of the sale were 2/10, n/30. At the time of the sale, the seller recorded the transaction by debiting accounts receivable for $5,000 and crediting sales revenue for $5,000. The customer paid the balance due, less the discount, on March 21. To record the March 21 transaction, the seller should debit Multiple Choice cash for $4,900 accounts receivable for $5,000 accounts receivable for $4,900 cash for $5,000
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