Accounting · Books of Original Entry
Which of the following describes the correct accounting treatment for a 'Trade Discount' allowed by a wholesaler to a retailer at the time of a bulk purchase of office stationery?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Debit Cash Account and Credit Trade Discount Account
- 2Debit Purchases Account and Credit Discount Received Account
- 3No separate entry is made for Trade Discount in the books of accounts✓
- 4Debit Discount Allowed Account and Credit Sales Account
Correct answer
No separate entry is made for Trade Discount in the books of accounts
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