Q67
Discount allowed is
A.
Expense of business
AnswerB.
Income of business
C.
Loss of business
D.
Abnormal loss of business
Answer: Option A
Solution
Answer: Option A
Solution:
Discount allowed is Expense of business. When the buyer receives a discount, this is recorded as a reduction in the expense (or asset) associated with the purchase, or in a separate account that tracks discounts.