The use of a discounts lost account implies that the recorded cost of a purchased inventory item is its

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The purchase discount lost account is used to record the difference between the invoice price of an inventory item and the amount actually paid for the item. This difference represents the amount of the purchase discount that was not taken by the company. The recorded cost of the inventory item is therefore the invoice price less the purchase discount lost.

The Use of a Discounts Lost Account Implies That the Recorded