35. when a customer takes a legitimate early payment discount, will the company record the customers…

35. when a customer takes a legitimate early payment discount, will the company record the customers discount as a debit or credit in the account sales discounts? select... debit credit

35. when a customer takes a legitimate early payment discount, will the company record the customers discount as a debit or credit in the account sales discounts? select... debit credit

Answer

Brief Explanations:

Sales Discounts is a contra - revenue account. Contra - revenue accounts have a normal debit balance. When a customer takes a legitimate early payment discount, the company records it as a debit to the Sales Discounts account to reduce the amount of revenue recognized.

Answer:

Debit