Debit side
Credit side
No Entry is made
Written as a note
Answer is Right!
Answer is Wrong!
The correct answer is A. Debit side.
A cash discount received is a reduction in the amount of money owed to a supplier when the invoice is paid within a certain time period. It is recorded as a debit in the cash book because it represents an increase in cash.
The other options are incorrect because:
- Option B is incorrect because a cash discount received is not a credit to the supplier.
- Option C is incorrect because a cash discount received is always recorded in the cash book.
- Option D is incorrect because a cash discount received is not written as a note.
I hope this helps! Let me know if you have any other questions.