ACCOUNTING I Dersi Merchandising Operations soru detayı:

CEVAP:

There are two types of discounts that companies provide to their customers; cash discount and trade (bulk) discount. Trade discount is applied at the time of  purchases in high volumes and is deducted from the list price before the purchase cost is determined11. Therefore, there is no need to make additional entries for the discount. 

The cash discount, on the other hand, is related to the timing of payment. If the buyer pays the invoice price within a certain number of days before the maturity, a predetermined rate of discount is applied on invoice amount.