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An example of a credit entry in a profit and loss account is

An example of a credit entry in a profit and loss account is
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  • A Carriage inwards
  • B Carriage outwards
  • C Discounts allowed
  • D Discounts received
Correct Answer: Option D
Explanation:
Discount received appear as a credit on the Profit and Loss Account. Basically, the cash discount received journal entry is a credit entry because it represents a reduction in expenses.

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