Question
Discount received when a business makes a payment before the due date, is recorded in the ___ journal
1. Cash payment
2. Creditors
3. General
4. Cash receipt
1. Cash payment
2. Creditors
3. General
4. Cash receipt
Answers
GPT-4o mini
The correct answer is **2. Creditors**.
When a business receives a discount for early payment to a creditor, it is recorded in the creditors journal, as it pertains to accounts payable transactions.
When a business receives a discount for early payment to a creditor, it is recorded in the creditors journal, as it pertains to accounts payable transactions.