A-LevelAccountingThe accounting cycle9706/12 · Feb/Mar 2023 · Q21 Mark
A credit customer cleared her debt of $600 after deducting a cash discount of $12. How would the customer account appear in the books of the supplier after the payment has been recorded?
Adebit: balance b/d $600; credit: bank $588, discount allowed $12
Bdebit: balance b/d $600; credit: bank $588, discount received $12
Cdebit: bank $588, discount allowed $12; credit: balance b/d $600
Ddebit: bank $588, discount received $12; credit: balance b/d $600
✓ Correct answer
A: debit: balance b/d $600; credit: bank $588, discount allowed $12
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