shyama/c........dr
to purchases a/c
The journal entry to record the adjustment to the AFDA is as follows: Debit Bad Debt Expense Credit AFDA To record a write-off: Debit AFDA Credit Trade A/R To record a recovery of a previously written-off transaction: Debit Trade A/R Credit AFDA Debit Cash Credit Trade A/R
debit goods purchased (at trade discount amount)credit cash / bank / accounts payable
trade discounts, cash discounts, discount series and seasonal discounts
The Mining Journal - trade magazine - was created in 1835.
false
Sales >>>Cash/Accounts Rec/NotesRec Cost of Goods Sold >>>Merchandise Inventory
The Tea & Coffee Trade Journal is published on a monthly basis. The journal is published by Lockwood Publications, Inc. The entire journal can be read online at the Tea and Coffee website.
yes, trade discounts is also called functional discounts I wish I could improve this answer since it does not address the actual question of what these discounts are, but I am also looking for that answer, so hopefully someone will actually take the time to read the question before answering it.
Trade discounts are guranteed discounts a business is getting by purchasing from a seller. Cash discounts are OPTIONAL discounts that a buyer gets if they opt to pay their bill (invoice) earlier then the due date. The seller specifies in the invoice how many days earlier a buyer has to pay their bill to get the cash discount. If a cash discount is taken, it is applied after the trade discounts, but before shipping and handling charges.
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.NB: Remember the general rule that sales are recorded when an exchange takes place. The measurement of the sale is based on the exchange price. Therefore, the amount recorded as a sale is the invoice price. The entries previously shown for a $4,000 sale would also be appropriate if the list price was $5,000, subject to a 20% trade discount.
Selling and purchasing is the most common general trade of the business.
General Trade Company ended in 1774.