The Two Acceptable Approaches to Recording Sales Discounts Are ________

question 86

Multiple Choice

The two acceptable approaches to recording sales discounts are ________.

• A) the net method and the aging method
• B) the allowance method and the aging method
• C) the net method and the gross method
• D) the allowance method and the gross method

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Definitions:

Commitment Date

The date on which two parties agree upon the terms of a financial transaction or agreement, creating a commitment.

Net Method

An accounting method that records transactions and balances net of any discounts or allowances.

Spot Rates

The immediate exchange rate at which one currency can be exchanged for another currency on the foreign exchange market.

Exchange Rates

The rate at which one currency can be exchanged for another, influencing international trade and investment decisions.