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

The Purchases Discounts Taken account is used in the gross price method, where discounts are recorded when they are actually taken, rather than at the time of purchase.

The Purchases Discounts Taken Account May Appear in the Accounting