Concept:A
3% cash discount is recorded in the discount columns of the cash book.
Explanation:Doe and Sons Limited receives or allows this
3% discount at the time of actual cash payment or receipt.
Because the discount depends on immediate settlement of an amount, it is treated as a cash discount.
In accounting, cash discounts are always entered in the cash book on either the debit or the credit side.
The sales journal and purchases journal are meant only for credit transactions, not discounts.
The journal proper is reserved for special entries that do not belong to any other book.
Therefore, the
3% discount should be recorded in the cash book and nowhere else.
Answer:B. cash book