The entry to record payment of a voucher for an invoice after the discount period under the gross method and the periodic method will include:
A) a debit to Vouchers Payable.
B) a credit to Purchase Discounts.
C) a debit to Discounts Lost.
D) a credit to Vouchers Payable.

Question

Quizplus · Accepted Answer

Under the gross method, the full invoice amount is recorded initially. When payment is made after the discount period, the entry includes a debit to Vouchers Payable to reduce the liability.

The Entry to Record Payment of a Voucher for an Invoice