Question: 46. When using a perpetual inventory system, why are discounts credited to Inventory? A) The discounts are debited to discount expense and thus the

46. When using a perpetual inventory system, why are discounts credited to

46. When using a perpetual inventory system, why are discounts credited to Inventory? A) The discounts are debited to discount expense and thus the credit has to be made to B) C) D merchandise inventory. The discounts reduce the cost of the inventory. The discounts are a reduction of business expenses. None of these answers choices are correct.

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ANSWER B The discounts reduce the cost of the inventory Trade and cash discounts are essential tools ... View full answer

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