When receiving a discount for merchandise purchased, you use the Cost of Goods Sold Merchandise Discounts account to record the discount.

Name: When receiving a discount for merchandise purchased, you use the Cost of Goods Sold Merchandise Discounts account to record the discount.
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Question

Quizplus · Accepted Answer

The Cost of Goods Sold Merchandise Discounts account is used to record discounts received on merchandise purchased. This account is a contra-revenue account that reduces the cost of goods sold.

When Receiving a Discount for Merchandise Purchased, You Use the Cost