Both credit card discounts and cash discounts can be recorded either as contra revenues or as expenses.

Question

Quizplus · Accepted Answer

Both credit card discounts and cash discounts are examples of discounts offered to customers. These discounts can be recorded as contra revenues, reducing the amount of revenue recorded, or as expenses, increasing the cost of goods sold or operating expenses. The choice of how to record them will depend on the company's accounting policies and practices.

Both Credit Card Discounts and Cash Discounts Can Be Recorded