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30 November, 16:29

In a perpetual inventory system, the amount of the discount allowed for paying for merchandise purchased within the discount period is credited to Inventory. Purchase Discounts. Purchase Allowance. Sales Discounts.

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  1. 30 November, 18:09
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    Purchase Discounts

    Explanation:

    When the the payment is made within the discount period the entries will include a debit of Account Payable, a credit of Cash and another credit to Purchase Discount.
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