When discount is allowed, the accounting entry is debit Discount allowed and credit

When a discount is allowed, it means the seller is reducing the selling price of goods to attract customers. In accounting terms, it is considered an expense for the seller, and it is recorded as a debit entry in the Discount Allowed account. On the other hand, the buyer is getting the goods at a lower price, and it is recorded as a credit entry in the debtor's account (if the buyer has not yet paid for the goods) or in the bank account (if the buyer has already paid for the goods). Therefore, the correct answer is "debtors account".