Question
44 Pimlico owes Vauxhall for some goods it recently bought. Pimlico is settling the invoice early to obtain a discount, which it was not expected
44 Pimlico owes Vauxhall for some goods it recently bought. Pimlico is settling the invoice early to obtain a discount, which it was not expected to take advantage of at the point at which Vauxhall sold the goods.
What is the correct double entry for this in Vauxhalls books?
A Dr Vauxhall Cr Bank Cr Discount received
B Dr Vauxhall Dr Discount received Cr Bank
C Dr Bank Cr Revenue Cr Pimlico
D Dr Bank Dr Revenue Cr Pimlico
Explain your answer
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Fundamental Cornerstones Of Managerial Accounting
Authors: Dan L. Heitger, Maryanne M. Mowen, Don R. Hansen
1st Edition
0324378068, 9780324378061
