In a perpetual inventory system the amount of the discount allowed for paying for merchandise purchased within the discount period is credited to
A) Inventory.
B) Purchase Discounts.
C) Purchase Allowance.
D) Sales Discounts.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, the inventory account is directly adjusted for any discounts received on purchases, so the discount is credited to the Inventory account.

In a Perpetual Inventory System the Amount of the Discount