The entry to record payment of a voucher for an invoice within the discount period under the gross method will include:
A) a debit to Purchase Discounts.
B) a credit to Purchase Discounts.
C) a debit to Cash.
D) Both B and C would be in the entry.

Question

Quizplus · Accepted Answer

Under the gross method, when a payment is made within the discount period, the purchase discount is recorded as a credit to Purchase Discounts, reducing the total amount payable.

The Entry to Record Payment of a Voucher for an Invoice