Available under Creative Commons-NonCommercial-ShareAlike 4.0 International License.
1. When goods are purchased with cash, the following entry is necessary:
debit Purchases, credit Cash
2. When goods are purchased on credit, the following entry is necessary:
debit Purchases, credit Accounts Payable
3. When goods are purchased on credit, but are paid back early due to a cash discount incentive, the following entry is necessary:
debit Accounts Payable, credit Cash, and credit Purchases Discount.
debit Purchases, credit Cash
2. When goods are purchased on credit, the following entry is necessary:
debit Purchases, credit Accounts Payable
3. When goods are purchased on credit, but are paid back early due to a cash discount incentive, the following entry is necessary:
debit Accounts Payable, credit Cash, and credit Purchases Discount.
debit Accounts Payable, credit Cash, and credit Purchases Discount.
- 1870 reads
