I have a small clothing store and offer a 10% discount to certain members of my church. Last year the total amount of the discount amounted to $5k. How do I treat this?
Thanks,
Mark

Here is how it works when you sell something.

Dr. Cash 100
Cr. Sales 100

That is, receive cash 100 and record sales of 100

Here is how it works with your 10% discount Church members:
Dr. Cash 90
Dr. Discounts Allowed/Given 10
Cr. Sales 100

Receive only 90 in cash.

On your Income Statement….

Sales 100
Less: Discounts Allowed 10
Net Sales 90

So, if you combined these 2 examples:
Sales 200
Less: Discounts Allowed 10
Net Sales 190


So the 5,000 should simply be taken off from the sales.

However, if you simply just charged them 90 dollars and just recorded sales as 90, such as

Dr. Cash 90
Cr. Sales 90

If that is what you did, then there is absolutely nothing left you need to do.