In a periodic inventory system, the entry to record the taking of a cash discount for the purchase of merchandise would include a:
A)credit to Purchase Discounts
B)credit to Inventory
C)debit to Purchase Discounts
D)credit to Purchase Returns and Allowances.

Question

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In a periodic inventory system, when a cash discount is taken for the purchase of merchandise, the entry includes a credit to Purchase Discounts. This account is used to track the discounts received from suppliers for early payment, reducing the cost of purchases.

In a Periodic Inventory System, the Entry to Record the Taking