Discounts Flashcards
1
Q
what are the 2 types of discounts?
A
trade discount & bulk discount
2
Q
how should purchases and sales be recorded?
A
record them NET of any discounts
3
Q
how should the discounts be deducted?
A
trade discounts should be deducted BEFORE any settlement discount
4
Q
double entry: Settlement discount (if expected)
A
Dr Receivables (price after discount) Cr sales (price after discount)
5
Q
double entry: settlement discount (if NOT expected)
A
Dr Receivables (full price) Cr Sales (full price)
