The amount of the trade discount taken by the customer is recorded as a(n)

Question

Quizplus · Accepted Answer

The trade discount is a reduction in the list price of a product or service that is offered to customers who meet certain conditions, such as buying in large quantities or paying in cash. The amount of the discount is deducted from the amount recorded as a sale, which is why it is not considered an asset, liability, or expense. Therefore, the correct answer is C.

The Amount of the Trade Discount Taken by the Customer