Accounting for IGCSE & O level - Accounting Procedures (Section 18 - No. 19)

What is the correct accounting treatment for a discount received from a supplier?

Debit Discount Received, Credit Supplier Account

Debit Supplier Account, Credit Discount Received

Debit Purchases, Credit Supplier Account

Debit Discount Allowed, Credit Supplier Account

Explanation

A discount received from a supplier decreases the amount owed; therefore, it requires the supplier's account to be debited and a credit to discount received.

Accounting for IGCSE & O level - Accounting Procedures (Section 18 - No. 19)

Explanation

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