Discount allowed / Discount received
Asked Mar 19, 2010, 09:43 AM
My understanding of these two accounts are:
Discount allowed is affected when the company offers a discount to a customer and it is netted against sales... thus listed in the chart of accounts as an income account.
Discount received is affected when a vendor offers a discount on purchases and it is netted against purchases... soooo in the chart of accounts this account would be what type of account - possibly expense?
Thanks in advance...