The entry to record a payment on a $660 account within the 4% discount period would include a:
A) debit to Accounts Payable for $634.
B) debit to Accounts Payable for $660.
C) debit to Purchases for $634.
D) debit to Cash for $660.

Question

Quizplus · Accepted Answer

A payment within the discount period would still require the full amount of the account payable ($660) to be debited to remove it from the liability account. The discount is accounted for separately.

The Entry to Record a Payment on a $660 Account