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good day,
I have a query concerning a question that I attempted in suspense accounts.
“A discount of $50 given to a customer had been credited to discounts received.”
The solution was Dr Discount Allowed (2 * $50) $100; Cr Suspense (2 * $50) $100
My question is why there is a Dr of $100 instead of $50?
Please help!
The correct solution is this:
Dr Discounts received 50 (because this is a discount allowed and so the amount credited to discount received has to be removed)
Dr Discounts allowed 50 (which is what the correct entry is for a discount allowed)
Cr Suspense account 100
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