The purchases discounts taken account may appear in the accounting records if which one of the following methods is used to account for purchase discounts?
A)net price method
B)gross price method
C)allowance method
D)sales price method

Question

Quizplus · Accepted Answer

Under the gross price method, purchase discounts are recorded when they are taken, appearing in the accounting records as a reduction in the cost of purchases.

The Purchases Discounts Taken Account May Appear in the Accounting