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What type of account is a sales discount?
A sales discount account is a contra-revenue account.
What is the Difference between trade discount and discount allowed?
trade discount is for trade customer (who has an account with the supplier) discount allowed is for walk in customers (no account holders)
What is a normal balance account of a Sales discount?
Sales discount account has debit balance as it causes the reduction of sales and hence a contra account of sales revenue account.
Is Purchase Discount revenue or expense?
Sales discount is not an expense account, but is also a deduction to an income statement. It is just a contra account of a revenue account particularly a sales revenue account.
What is the main difference between trade discount and cash discount?
The main difference between, cash discount is shows in account book but tradediscount does not show in account book.
Which golden rule of account for Discount allowed?
nominal account
Is a purchase discount account an asset or liability?
It is a contra asset account; thus, an ASSET
Is discount received a revenue?
credit.Yes it is an income. It will be posted in the credit side of the profit and loss account.Sales discount is not an expense account, but is also a deduction to an income statement. It is just a contra account of a revenue account particularly a sales revenue account.
Is the Sales discount account a debit or credit?
Sales discount is subtracted from gross sales in arriving at net sales. It is a contra revenue account, so it is ALWAYS debit.
What is the journal entry to discount notes payable?
debit cashdebit discount chargescredit notes payable account
What is the Journal entry for discount allowed?
The journal entry for discount allowed typically involves debiting the Discount Allowed account and crediting the Accounts Receivable or Sales account. For example, if a business allows a $100 discount on a sale, the entry would be: Debit: Discount Allowed $100 Credit: Accounts Receivable or Sales $100 This reflects the reduction in revenue due to the discount offered to the customer.
Difference between trade discount and cash account?
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