The net method for recording purchases records the purchase invoice at its net amount of any cash discount.

Question

Quizplus · Accepted Answer

The net method for recording purchases does record the purchase invoice at its net amount which is purchase price minus any applicable cash discounts. This means that if a cash discount is offered for early payment, it is deducted from the purchase price before recording. Therefore, the purchase is recorded at its net amount.

The Net Method for Recording Purchases Records the Purchase Invoice