To record the payment of a purchase invoice when a cash discount is taken, the accountant would:

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When a cash discount is taken, it means that the purchaser is paying less than what is owed. Therefore, the Accounts Payable account is reduced by the amount available for the cash discount (Purchases Discounts). Cash is also credited for the amount paid. This is reflected in the journal entry where Accounts Payable account is debited, Purchases Discounts account is credited and Cash is credited.

To Record the Payment of a Purchase Invoice When a Cash