Why discount account credited
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Except for trade discounts — which are not recorded in the financial statements, these discounts appear as a credit on the income statement in the Profit and Loss Account. Basically, the cash discount received journal entry is a credit entry because it represents a reduction in expenses.
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Except for trade discounts which are not recorded in the financial statements,these discounts appear as a credit on the income statement in the Profit and Loss Account. Basically, the cash discount received journal entry is a credit entry because it represents a reproduction in express.
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