During the Financial Year Ended 31 October 2021, Susie Granted

Multiple Choice

During the financial year ended 31 October 2021, Susie granted her credit customers early settlement discounts of £9,200. However, only £3,700 of these discounts were taken up by her customers, with the remainder paying the full amount for their purchases. What is the correct double entry to record the discounts allowed not taken up by Susie's customers?

A) Debit cash £3,700, Credit sales £3,700
B) Debit cash £5,500, Credit sales £5,500
C) Debit expenses (discounts allowed) £3,700, Debit cash £5,500, Credit sales £9,200
D) Debit expenses (discounts allowed) £9,200, Credit sales £9,200