You acquired goods with a normal selling price of P10,000 at a discounted price of P8,000. You recorded the goods at P8,000. You are applying which of the following concepts?

Understand the Problem

The question is asking to identify the accounting concept or principle applied when goods are recorded at a discounted price rather than at their normal selling price.

Answer

historical cost

The final answer is historical cost.

Answer for screen readers

The final answer is historical cost.

More Information

Recording the goods at P8,000 reflects the historical cost concept, which means the transactions are recorded at their acquisition cost.

Tips

Students often confuse historical cost with fair market value, but historical cost involves recording the actual cost at the time of purchase.

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