A company pays an invoice early and takes 4% off of the original invoice price.The account to be credited for this amount under a perpetual inventory system is:

Name: A company pays an invoice early and takes 4% off of the original invoice price.The account to be credited for this amount under a perpetual inventory system is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a perpetual inventory system, when a company takes a discount for early payment, the discount reduces the cost of inventory. Therefore, the Inventory account is credited.

A Company Pays an Invoice Early and Takes 4% Off