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26 December, 05:35

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.

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  1. 26 December, 05:39
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    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.
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