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

Question

Quizplus · Accepted Answer

In a perpetual inventory system, purchase discounts are recorded by reducing the Merchandise Inventory account, as the inventory is recorded at its net cost.

In a Perpetual Inventory System, the Amount of the Discount