Accounting JAMB

Provision for discount allowed can be recorded as debit to?

A. the profit and loss account and a credit to the provision for discount allowed
B. provision for discount allowed and a credit to the profit and loss account
C. discount allowed and a credit to the profit and loss account
D. expenses and a credit to customers’ account

Correct Answer:

Option A – the profit and loss account and a credit to the provision for discount allowed

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