On the work sheet, Purchases Discounts appears in the
A) Trial Balance Debit column and the Income Statement Credit column.
B) Trial Balance Credit column and the Balance Sheet Credit column.
C) Trial Balance Debit column and the Income Statement Debit column.
D) Trial Balance Credit column and the Income Statement Credit column.
E) Adjustments Debit column and the Income Statement Credit column.

Question

Quizplus · Accepted Answer

Purchases Discounts is a contra expense account, which means it reduces the total amount of expenses on the income statement. Therefore, it appears in the Trial Balance Credit column and the Income Statement Credit column.

On the Work Sheet, Purchases Discounts Appears in the