The account used to record the reduction given to customers for prompt payments.

Question

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Sales Discounts is the account used to record the reduction given to customers for prompt payment. Purchases Discount (A) is used to record the reduction received from suppliers for prompt payment. Purchases Returns & Allowances (B) is the account used to record returns or allowances received from suppliers. Sales Returns and Allowances (D) is used to record returns or allowances granted to customers.

The Account Used to Record the Reduction Given to Customers