Concept:Discount received is an income earned by the business.
Explanation:A discount received is a reduction in the amount a business pays to its supplier.
Because it reduces an expense or liability, it is treated as a gain or income.
It is not part of the cost of goods sold, so it is not shown in the trading account.
It is also not an asset or liability, so it does not belong in the balance sheet.
Instead, discount received is recorded on the credit side of the profit and loss account.
It is credited because it increases the profit of the business.
Answer:B. profit and loss