The first section of an income statement reports a companys sales revenue purchase discounts sales returns and cost of goods sold. Discount allowed is an expensetake an example if one makes a cash sale and offers a cash discountit reduces the cash paid and thus accounted for as an expensea. Dopedollar Com Income Statement Statement Template Personal Financial Statement Discount are very popular terms in present business. . Trade Discount and Cash discount. To Discount Received Income 1000. Discount allowed is debatable because some treat it as a selling and distribution cost where as others as an administrative cost. The entry to record the receipt of cash from the customer is a debit of 950 to the cash account a debit of 50 to the sales discount contra revenue account and a 1000 credit to the accounts receivable account. Expensesxxx Profit Loss xxx. Anonymous Should I record settlement discount received in the income stat...
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