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.
The assets and liabilities of Amos Moving Services at May 31, 2011, the end of the current year, and its revenue and expenses for the year are listed below. On April 1, 2010, the
Explain about the Petty Cash Petty Cash It is a small amount of money which is kept in the office for making small expenditures. ($10, $25, $50, etc.) Business will conclude
what is accounting equation and introduction
Ratio Analysis : A 'Ratio' is clear as an arithmetical/quantitative/ numerical relationship between two numbers. Ratio analysis is a extremely significant and age old method of f
Q. Show Accumulated depreciation account with example? Micro Train credits the depreciation amount to an accumulated depreciation account which is a contra asset rather than di
Q. Illustrate about accounting cycle? The accounting cycle is a series of points performed during the accounting period some throughout the period and some at the end to reco
An estimated liability: 1. Is an unknown liability of a certain amount. 2. Is a known obligation of an uncertain amount that can be reasonably estimated. 3. Is a liabil
A company pays rates annually/yearly in advance on 1 April every year. $4000 is paid by them on 1 April 2009 and $4800 on 1 April year 2010. The company's accounting year end is 31
In accounting we create a distinction between business and the owner. All the records are maintained from the viewpoint of the business, quite than from that of the owner. An enter
Q. Explain about Accounting transaction? An accounting transaction is a business event or activity that causes a measurable change in the accounting equation Assets = Liabiliti
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