Question

When a sale occurs and a company is using the gross method of recording sales discounts, the sales voice (with credit terms granting a discount for early payment) will be recorded at the O a seller's cost of the merchandise. O b. gross amount of the invoice O c. amount of the discount. O d. net amount of the invoice after the discount

Answer 1

Answer: b. Gross amount of invoice

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Under the gross method, sales should be recorded at the gross amount of the invoice

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Note:

Under the net method, sales should be recorded at the net amount of the invoice.

Net amount = Gross amount - Sales discount.