Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 36 - No. 11)
What is the impact of a cash discount received on the trade receivable account?
Increases the amount in trade receivable
Decreases the amount in trade receivable
No impact
The trade receivable account is not impacted by cash discounts.
Explanation
The cash discount reduces the net amount due, hence decreasing the trade receivable.
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