If a customer makes a credit purchase of 1197 and timely pays the amount due less a 2 discount. The discount is recorded?

If a customer makes a credit purchase of $1,197 and pays the amount due timely, they would receive a 2% discount, which amounts to $23.94 (2% of $1,197). The customer would then pay $1,173.06 ($1,197 - $23.94). The discount is recorded as a reduction in revenue, typically reflected in the accounts as a sales discount.