Question

Why discount account credited

Answer 1

Answer:

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.

Answer 2

Answer:

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.