Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 31 - No. 39)
How is a discount received from a supplier recorded?
Debit purchases, credit cash.
Credit purchases, debit cash.
Debit accounts payable, credit purchases.
Debit accounts payable, credit cash.
Explanation
Accounts payable (liability) decreases(debit) when paying less, and the cash account is credited.
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