which of the following conditions best represents the net effect of discount allowed on credit sales on the accounts of the business?

Answer Details

The net effect of discount allowed on credit sales on the accounts of a business is a decrease in the value of the closing balance of the sales ledger control account. This is because discount allowed reduces the amount of money the customers owe the business and hence the overall value of accounts receivable in the sales ledger control account decreases. The other options are incorrect because discount allowed on credit sales does not affect net profit, increase the value of sales, or decrease the value of purchases in the trading account.