0
Is a trade discount on a purchased merchandise recorded in the accounts?
Wiki User
∙ 10y ago
Trade discounts are not entered in the accounting records. They are not considered to be a part of the sale because the exchange agreement was based on the reduced price.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
Assets purchased for resale are recorded in which of the following accounts?
Merchandise Inventory
How should a return of merchandise purchased on account be recorded?
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
When merchandise is purchased to resell to customer's it is recorded in the account entitled?
merchandise inventory
How is a cash payment received from a customer for a product purchased on account recorded?
debit to cash and credit to accounts receivable
How is recorded a cash payment received from a customer for a product purchased on account?
debit to cash and credit to accounts receivable
Assets purchased for resale are recorded in which of the following accounts?
Merchandise Inventory
How should a return of merchandise purchased on account be recorded?
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
When merchandise is purchased to resell to customer's it is recorded in the account entitled?
merchandise inventory
Bring out the difference between trade discount and cash dicount?
Cash discount is the discount in amount in accounts payable while trade discount is on sales price discount which is not recorded in business books and transaction is recorded at discount price.
How is recorded a cash payment received from a customer for a product purchased on account?
debit to cash and credit to accounts receivable
How is a cash payment received from a customer for a product purchased on account recorded?
debit to cash and credit to accounts receivable
Inventory shortage is recorded when?
merchandise is returned to seller
Is inventory shrinkage recorded as an expense?
As a reduction to merchandise inventory
When purchasing merchandise for resale what journal is the transaction recorded in?
journal
When is discount allowed to debtors?
Discount allowed for the early settlement of accounts - This discount is allowed to your debtors or customers at the time of the settlement of their account. You may agree with your customers to allow a certain percentage of discount allowed e.g. 2½ % if they settle the full amount on an invoice within 30 days). This discount is recorded when a debtor or customer settles the full invoice within the specified time. This discount needs to be entered as an expense in a Discount Allowed account and will reduce the net profit and will have no effect on the gross profit.This is murali +9199591-22272
What is reporting in accounting?
Recording referes to the concept of just writing down any exchage of values in business (transactions) such as merchandise sold, it is recorded in a double entry sales where cash is debited and merchandise is credited. during classification, these transactions are classified in heads under "T Accounts" where all cash/other accounts which were debited/credited comes under one heading and shows the current position of cash/ other accounts these T Accounts are then summarized in steps in a more meaningful form to have a better view of progress of the business. example is p/l statements, balance sheet, etc
What is the difference between cash discount and trade discount?
Difference between trade discount and cash discount are as follow:1)on the basis of objective:td: this discount is allowed to increase sales.Cd: this discount is allowed to motivate the customer to pay early.2)basis:td: it is allowed on the list price of the goods.Cd: it is allowed on the amount to be paid.3)entry in the books:td:it may be stated as information,but it is not recorded in the books of account.Cd: it is recorded in the books of accounts.4)entry in invoice:td: it is stated in the invoice.Cd: it is not shown in the invoice.5)receiver:td: it is allowed to all customer, wethers cash or credit.Cd: it is not allowed to all customer.6) rate:td: rae of trade discount is generally higher than the cash discount.Cd: rate of cash discount is generally lower.
