To determine how much a company has discounted payments from its customers, it should review the
A) Cost of Goods Sold account.
B) Inventory account.
C) Sales Returns & Allowances account.
D) Sales Discounts account.

Question

Quizplus · Accepted Answer

The Sales Discounts account tracks any discounts the company has given to customers for paying their bills early. This account can indicate how much the company has discounted payments from its customers. The other options (Cost of Goods Sold, Inventory, and Sales Returns & Allowances) do not specifically pertain to discounted payments from customers.

To Determine How Much a Company Has Discounted Payments from Its