October 30, 2016 admin

Cash Discounts Allowed

Adjustments to Income

DIVISION CASH DISCOUNTS ALLOWED ADDITIONS TO INCOME ACCOUNT
F L T C 9400

ACCOUNT EXPLANATION
Cash discount allowed to customers for prompt payment of accounts.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Remittance received from service customer less cash discount CR
    Cash in Bank—General 1001
    Cash Discounts Allowed 9400
      Accounts Receivable—Service 1121
COMMENTS
  • Cash discounts are usually confined to wholesale sales made to commercial accounts.