Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Explain about cash discount?
In a few industries credit terms include a cash discount of 1 percent to 3 percent to induce untimely payment of an amount due. A cash discount is a deduction from the invoice price that is able to be taken only if the invoice is paid within a specified time. A cash discount varies from a trade discount in that a cash discount is a deduction from the gross selling price for the prompt payment of an invoice. In contrast a trade discount is a inference from the list price to determine the gross selling price or invoice price. Sellers call a cash discount a sales discount as well as buyers calls it a purchase discount. Companies habitually state cash discount terms as follows
- 2/10, n/30-denotes a buyer who pays within 10 days following the invoice date may deduct a discount of 2 percent of the invoice price. If payment isn't made within the discount period, the entire invoice price is due 30 days from the invoice date.
- 2/EOM, n/60-denotes a buyer who pays by the end of the month of purchase may deduct a 2 percent discount from the invoice price. If payment isn't made within the discount period the entire invoice price is due 60 days from the invoice date.
- 2/10/EOM, n/60-denotes a buyer who pays by the 10th of the month following the month of purchase may deduct a 2 percent discount from the invoice price. If payment isn't made within the discount period the entire invoice price is due 60 days from the invoice date.
Sellers can't record the sales discount prior to they receive the payment since they don't know when the buyer will pay the invoice. A cash discount occupied by the buyer reduces the cash that the seller actually collects from the sale of the goods thus the seller must indicate this fact in its accounting records. The following entries illustrate how to record a sale and a subsequent sales discount.
How to create account for barter transactions? As My Company is providing a service to another company and that company is reimbursing us with his service.
Reliable information is essential before decision makers can make a sound decision involving the allocation of scarce resources. Accounting information is precious because decision
Q. Relevance information to financial reporting? To have relevance information should be pertinent to or affect a decision. The information should make a difference to someone
How many kind of Assets?
meaning of accounts receivable
Concept of Flow of Funds : It refers to the 'Change in Funds' or 'Change in Working Capital'. That is, any increase or decrease in Working Capital. In business, daily, numerous t
The operating expenses section Operating Expenses - directly associated to the sale of merchandise General expenses (administrative expenses) related to business's offic
Jane and Walt form Orange Corporation. Jane transfers equipment worth $475,000 (basis of $100,000) and cash of $25,000 to Orange Corporation for 50% of its stock. Walt transfers
Q. Can you explain about balance sheet? The balance sheet, sometimes called as the statement of financial position lists the liabilities, company's assets and stockholders' equ
Which of the following transactions does not involve an exchange of value? a. Payment of a debt b. Purchase of a building on credit c. Borrowing money d. Loss from theft
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd