One of the businesss suppliers offered it a settlement discount of 5% on its total outstanding account of R3 040 the business took advantage of this and settled in full. What is the accounting treatment for this discount?

Select one:

a. Debit creditors R152, credit trading inventory R152

b. Debit creditors R152, credit discount received R132.17, credit VAT output R19.83

c. Debit creditors R132.17, debit VAT input R19.83, credit discount received R152

d. Debit creditors R152, credit discount received R152