The entry to record payment of a voucher,for an invoice within the discount period,under the net method will include:
A)a debit to Purchase Discounts Lost.
B)a credit to Purchase Discounts.
C)a credit to Discounts Lost.
D)None of these is correct.

Question

Quizplus · Accepted Answer

Under the net method, the purchase discount is assumed to be taken at the time of the invoice, so no separate entry for discounts is needed when the payment is made within the discount period.

The Entry to Record Payment of a Voucher,for an Invoice