The Discount from Entering a Line Discount in the Sales

question 6

Multiple Choice

The discount from entering a line discount in the sales journal -

• A)is applied immediately as a debit to the sales discount revenue account
• B)is applied when the invoice is paid
• C)is applied immediately to a separate linked line discount account
• D)is applied immediately to reduce the amount credited to the revenue account

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Definitions:

Redemption

The act of buying back something that was previously sold, or the act of fulfilling a promise.

Indebtedness

The condition of owing money or being under financial obligation to another entity.

Accumulated Earnings

Profits that a company retains for reinvestment rather than distributing to shareholders as dividends.

Petition

is a formal written request, typically addressed to a court or a government institution, appealing for a particular cause or action.