Accounting for IGCSE & O level - Accounting Procedures (Section 8 - No. 28)
If a supplier offers a discount, how does that impact the company's books?
Debit trade payables, credit discount received.
Credit trade payables, debit discount allowed.
Debit discount allowed, credit cash.
Debit trade payables, credit cash.
Explanation
The discount reduces the amount owed.
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