The entry to record payment of a voucher, for an invoice paid within the discount period, under the net method will include:

A) a debit to Purchase Discounts Lost.
B) a credit to Purchase Discounts.
C) a credit to Discounts Lost.
D) None of these is correct.

Purchase Discounts Lost

Purchase discounts lost refer to the additional amount paid by a buyer for failing to take advantage of the early payment discount offered by a supplier.

Net Method

An accounting technique used to record purchases or sales of goods after deducting any discounts offered at the time of purchase or sale.

Discounts Lost

Charges incurred from not taking advantage of early payment discounts offered by suppliers.