The account used to record the reduction given to customers for ...

[roselinechinyere27m]

The account used to record the reduction given to customers for prompt payments.
 a. Purchases Discount
   b. Purchases Returns & Allowances
   c. Sales Discounts
   d. Sales Returns and Allowances

Question 2

A government entered into a general government capital lease at mid-year. The capitalizable cost of the leased asset was 200,000, including a 30,000 down payment at the inception of the lease.
 
  The implicit rate of interest in the lease agreement is 6 and annual payments of 50,000 are due each year during the lease term beginning one year from the inception of the lease. What accounting entities are affected by this transaction?
  a. General Fund, Debt Service Fund and General Capital Assets and General Long-Term Liabilities accounts
  b. General Fund
  c. General Capital Assets and General Long-Term Liabilities accounts
  d. General Fund, and General Capital Assets and General Long-Term Liabilities accounts

[harveenkau8139]

Answer to Question 1

c

Answer to Question 2

D