Which of the following statements is incorrect regarding sales discounts?
A) If a customer pays within the discount period,the selling price of the merchandise is reduced.
B) Sales Discounts is a contra-revenue account and is subtracted from Sales Revenue.
C) The net and gross methods have identical journal entries,just made at different points in time.
D) If a company takes advantage of sales discounts on its purchases,the cost of the inventory is ultimately reduced as a result of the discount.
Correct Answer:
Verified
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