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Debit & Credit for CLEAR

Discount give...

Question

Discount given to customers on credit sales is an expense for the business & hence it should be ________ on receipt of payment

A

Credited

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B

Debited

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C

Either A or B

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D

None of the above

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Solution

The correct option is B
Debited

Discount is an increase in expense and therefore it should be debited.

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