Discount received account is a

The Discount Received account is a nominal account. Nominal accounts are used to record revenues, expenses, gains, and losses. The Discount Received account is used to record the discounts received by a business from its suppliers for prompt payment of its accounts payable. The balance of the Discount Received account is added to the balance of other revenue accounts on the credit side of the profit and loss account to determine the net profit or loss for the accounting period. Therefore, the Discount Received account plays a key role in determining the financial performance of a business.