A purchase discount for early payment of an invoice is a credit entry under Purchase .Discounts False True

**True**A purchase discount for early payment of an invoice is recorded as a credit entry under "Purchase Discounts." ### Explanation:When a company takes advantage of a purchase discount (e.g., 2/10, net 30), it reduces the cost of the purchase. In accounting, this reduction is recorded in the "Purchase Discounts" account, which is a contra-expense account. Contra accounts have a normal credit balance, so the discount amount is credited to the "Purchase Discounts" account.For example:- If the original invoice amount is 20), the journal entry would be: **Debit:** Accounts Payable 980 **Credit:** Purchase Discounts $20 This reflects the reduction in the total expense due to the early payment discount.