Discount received is

Discount received is credited to the Profit and Loss Account. A discount is a reduction in the price of goods or services that a company offers to its customers. When a company receives a discount from its supplier for prompt payment or for some other reason, it is called a discount received. For example, if a company buys goods for $1,000 and receives a 5% discount for paying within 10 days, it will only pay $950. Discount received is considered as an income for the business, which means it increases the profit of the business. Therefore, it is credited to the Profit and Loss Account of the company. The Profit and Loss Account is an important financial statement that shows the revenues and expenses of a business over a specific period of time. The net profit or loss of the business is calculated by deducting the total expenses from the total revenue. In summary, discount received is credited to the Profit and Loss Account because it is considered as income for the business and it increases the profit of the business. Therefore, the correct answer is option C, credited to the Profit and Loss Account.