Discounts taken by the buyer for early payment of an invoice are credited to Sales Discounts by the buyer.

Name: Discounts taken by the buyer for early payment of an invoice are credited to Sales Discounts by the buyer.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Discounts taken by the buyer for early payment of an invoice are credited to a separate account called "Sales Discounts Taken" by the buyer. It is a contra-revenue account and is subtracted from the gross sales revenue to calculate net sales.

Discounts Taken by the Buyer for Early Payment of an Invoice