Question

Which of the following accounts are recorded when a customer pays within the discount period?

A) Sales Discounts
B) Service Revenue
C) Cash
D) Trade Discounts
E) Accounts Receivable

Answer 1

Cash, Sales Discounts, and Accounts Receivable are the accounts recorded when a customer pays within the discount period.

Step-by-step explanation:

The accounts that are recorded when a customer pays within the discount period are:

1. Cash: This is the account that represents the actual money received from the customer.
2. Sales Discounts: This account is used to record the discount given to the customer for paying within the discount period.
3. Accounts Receivable: This account represents the amount owed to the business by the customer before the payment is made.