Both purchase discounts and sales discounts appear on the income statement of a company that uses the perpetual inventory method.

Name: Both purchase discounts and sales discounts appear on the income statement of a company that uses the perpetual inventory method.
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Question

Quizplus · Accepted Answer

Purchase discounts may appear on the income statement as a reduction of the cost of goods sold, but sales discounts are typically recorded as a reduction of revenue, not as an expense on the income statement.

Both Purchase Discounts and Sales Discounts Appear on the Income