Explain about sales discounts, Accounting Basics

Assignment Help:

Q. Explain about Sales discounts?

Sales discounts when a company sell goods on account it clearly specifies terms of payment on the invoice. For instance the invoice in Exhibit 34 states the terms of payment as net 30. Net 30 are sometimes written as n/30. Either way this term denotes that the buyer may not take a discount and should pay the entire amount of the invoice (USD 20000) on or before 30 days after 2010 December 19 (invoice date)-or 2011 January 18. The terms had read n/10/EOM (EOM means end of month) the buyer could not take a discount as well as the invoice would be due on the 10th day of the month following the month of sale-or 2011 January 10. Credit terms differ from industry to industry.


Related Discussions:- Explain about sales discounts

Taxation 1, How are gains from the sale of § 1244 stock treated? Gains on ...

How are gains from the sale of § 1244 stock treated? Gains on the sale of § 1244 stock is treated as

External users of accounting information, Q. External users of accounting i...

Q. External users of accounting information? The external users of accounting information grouped into groups; everyone has different interests in the company and wants answers

What is the fair labor standard act, What is the Fair labor standard act ...

What is the Fair labor standard act Fair labor standard act (Wages and Hours Law) establishes standards for minimum wages, child labor, overtime pay, required payroll record

Show sales returns and allowances, Q. Show Sales returns and allowances? ...

Q. Show Sales returns and allowances? Sales returns and allowances Merchandising companies typically permit customers to return goods that are defective or unsatisfactory for a

What do you mean by salaries, Q. What do you mean by Salaries? The reco...

Q. What do you mean by Salaries? The recording of the payment of employee salaries typically involves a debit to an expense account and a credit to Cash. But for a company pays

Prepare a balance sheet, The balance sheet account as of July 31, 1995 for ...

The balance sheet account as of July 31, 1995 for XYZ company are : Capital: (fix lib)                            35,630 Office Equipment (ass)                  16730 Delivery

State unemployment tax, State unemployment tax This is referred to as S...

State unemployment tax This is referred to as SUTA (State Unemployment Tax Act). The taxes are paid to the state in which employer conducts business. This rate varies from stat

Define purchase discounts and purchase returns, Q. Define purchase discount...

Q. Define purchase discounts and purchase returns? Two general deductions from purchases are (a) purchase discounts and (b) purchase returns and allowances. In the general ledg

Explain the pretax impact of the changes , Beth Clark is an Accounting Mana...

Beth Clark is an Accounting Manager at Specialty Products Corp.  One afternoon in early January 2012, her boss, Controller Dan Greene, met with her and stated the following, "Beth,

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd