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WAEC Financial Accounting 2004 Question 23

Question 23

Double Entry and the Ledger

When discount is allowed, the accounting entry is debit Discount Allowed Account and credit

  1. A.Suspense Account
  2. B.Expenses Account
  3. C.Debtors Account
  4. D.Creditors Account
Show the answer and explanation

Answer: C (Debtors Account)

Explanation

Discount allowed reduces the debtor's balance.