Multiple choice

Discount allowed is deduction from which of the following?

  1. Discount account

  2. Cash account

  3. Account receivable

  4. Account payable

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Discount allowed is discount given to buyer that will be deducted from Account Receivable. A credit sale will increase Accounts Receivable, but the collection of the amount will decrease Accounts Receivable.

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