In the Month of April 20X4, Gilbert Allows Discounts to His

Multiple Choice

In the month of April 20X4, Gilbert allows discounts to his customers for early payment totaling £180.He receives similar discounts from his suppliers of £180.Which of the following describes the effect of these discounts on the major statement of profit or loss categories?

A) No effect
B) £180 added to expenses in respect of discounts allowed; £180 added to gross profit in respect of discounts received.
C) £180 deducted from revenue in respect of discounts allowed; £180 deducted from cost of sales in respect of discounts received.
D) £180 deducted from expenses in respect of discounts allowed; £180 added to gross profit in respect of discounts received.