Trade discounts are recorded in a Trade Discounts account in the accounting system.

Name: Trade discounts are recorded in a Trade Discounts account in the accounting system.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Trade discounts are not recorded in a separate Trade Discounts account. Instead, they are simply deducted from the list price to arrive at the net price, which is the amount actually paid by the customer. The net price is then recorded in the Sales account.

Trade Discounts Are Recorded in a Trade Discounts Account in the Accounting