Question

the ______________ account is a contra - expense account that decreases the cost of goods sold.
select an answer from the options below.
a sales discount
b purchases journal
c purchases discount
d contra cost of goods sold

Explanation:

A contra - expense account reduces the amount of an expense. Purchases Discount is a contra - expense account related to the cost of goods sold. Sales Discount is a contra - revenue account. Purchases Journal is a special journal for recording purchases. Contra Cost of Goods Sold is not a standard account name in this context.

Answer:

C. Purchases Discount