A transaction to record merchandise purchased with a trade discount would include a debit to Merchandise Discount

Question

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Answer 1

What is your question? What don't you understand? to purchase merchandise with a trade discount would be recorded as

 

dr.   merchandise

cr. . . .Accounts payable

 

and the amount would be the purchaser's cost, which is calcualted by deducting the trade discounts from the invoice price.