An example of a credit entry in a profit and loss account is?

By: |Published on: Mar 20|Categories: Accounting WAEC| 0 comments

A. carriage inwards
B. carriage outwards
C. discounts allowed
D. discounts received

Correct Answer: Option D

D. discounts received

Explanation

Discount received appears as a credit on the Profit and Loss Account. Basically, the cash discount received journal entry is a credit entry because it represents a reduction in expenses.

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