Trade discounts are recorded in the cash payments journal along with purchases discounts.

Name: Trade discounts are recorded in the cash payments journal along with purchases discounts.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Trade discounts are not recorded in the cash payments journal. They are deducted from the list price of goods purchased to arrive at the net price, which is then recorded in the purchases journal. Only purchases discounts are recorded in the cash payments journal.

Trade Discounts Are Recorded in the Cash Payments Journal Along