A trade discount is recognized Multiple choice question. as a contra account to accounts receivable. as trade discount revenue. by increasing the revenue amount recorded. by reducing the revenue amount recorded.

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14-02-2022
Business

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A trade discount is recognized Multiple choice question. as a contra account to accounts receivable. as trade discount revenue. by increasing the revenue amount recorded. by reducing the revenue amount recorded.

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Parrain Parrain · Answer 1 · 2022-02-23T10:12:00+01:00

When it comes to business transactions, a trade discount is recognized by increasing the revenue amount recorded.

What is trade discount?

This is an amount that a supplier to the business reduces from the cost of the goods sold to the business.

This means that the company would get the goods cheaper and their revenue will increase. The revenue recorded will therefore increase to reflect this trade discount.

In conclusion, option C is correct.

Find out more on trade discounts at https://brainly.com/question/7459025.