Receivables Flashcards
1
Q
What type of discount is a trade discount?
A
Quantity
2
Q
What type of discount is a cash discount
A
Sales
3
Q
Name the two methods of recording receivables
A
- Gross
2. Net
4
Q
Define Gross Method
A
records receivables at gross invoice price (before cash discount)
5
Q
Define Net Method
A
records receivables at the net invoice price (after cash discount)
