Which entry accurately reflects the creation of a reserve for discounts on accounts payable?
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Answer: C. Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c
Explanation
Creating a reserve for discounts on accounts payable involves debiting the reserve account and crediting the profit and loss account to reflect the adjustment.
- Subject
- Accounting and Finance
- Category
- Accounting
- Topic
- —
- Difficulty
- medium
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