Scoot Ltd paid a supplier $240 and received a cash discount of $6.Scoot Ltd's journal entry will include:

Question

Quizplus · Accepted Answer

This transaction involves the payment of an accounts payable of $240, and a cash discount of $6. Therefore, the correct journal entry would be to debit accounts payable for $240, debit the discount allowed account for $6, and credit cash for the total amount paid, which is $234 ($240 - $6 discount). Choice C accurately reflects this journal entry.

Scoot Ltd Paid a Supplier $240 and Received a Cash