Debit accounts receivable
Credit sales revenue
buyer' a/c dr discount on sales a/c dr to Sales a/c {being credit sales given on discount}
Debit accounts receivableCredit sales revenue
Debtors a/c Dr. Discount expense a/c Dr. To Sales a/c
debit accounts receivablecredit sales tax payablecredit sales discountcredit sales revenue
cash a/c.......dr amt(after discount) to sales a/c amt(after discount)
Sales(debit) and income summary (credit)
Debit Cash Credit Sales
debit accounts receivable 950credit Sales revenue 950
Debit Cash $XXX Credit Sales $XXX
[Debit] sales return [credit] cash / bank
It depends on the kind of discount and agreement that has been agreed upon in the sale transaction. Here is an example of a journal entry for discount for a normal credit sale transaction: Accounts receivable 9000 (dr) Discount from sale 500 (dr) Sales 9500 (cr)
When recording a journal entry for a sales account, ensure that the sales are strictly done on credit terms.
[Debit] Sales Return account [Credit] Cash account