The correct answer is B. Customer’s Account.
A cash discount is a reduction in the price of goods or services that is offered to customers who pay their bills promptly. When a customer takes advantage of a cash discount, the seller credits the customer’s account for the amount of the discount. This credit increases the customer’s account balance and reduces the seller’s accounts receivable balance.
Option A, Discount Account, is incorrect because this account is used to record discounts taken by the seller on its own purchases. Option C, Sales Account, is incorrect because this account is used to record the sales of goods or services. Option D, Purchases Account, is incorrect because this account is used to record the cost of goods or services purchased by the seller.