Question

In a perpetual inventory system, the amount of the discount allowed for paying for merchandise purchased within the discount period is credited to Inventory. Purchase Discounts. Purchase Allowance. Sales Discounts.

Answer 1

Answer:

Purchase Discounts

Explanation:

When the the payment is made within the discount period the entries will include a debit of Account Payable, a credit of Cash and another credit to Purchase Discount.

Answer 2

An amount of discount allowed on purchase of merchandise within the discount period is usually credited to Inventory in the perpetual inventory system.

Discount allowed means a discount granted by a goods seller to a buyer.

• The amount of discount allowed on merchandise purchase within the discount period is credited to Inventory in the perpetual inventory system.

Hence, the Option A is correct.

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