What is sales discounts account, Accounting Basics

Assignment Help:

Q. What is Sales Discounts account?

The Sales Discounts account is the contra revenue account to the Sales account. In the income statement the seller deducts this contra revenue account from gross sales. Sellers utilize the Sales Discounts account relatively than directly reducing the Sales account so management is able to examine the sales discounts figure to evaluate the company's sales discount policy. Note that the Sales Discounts account isn't an expense incurred in generating revenue. Relatively the purpose of the account is to reduce recorded revenue to the amount actually realized from the sale.


Related Discussions:- What is sales discounts account

What do you understand by deferred income, Q. What do you understand by Def...

Q. What do you understand by Deferred income? Deferred income -- a liability which arises when a company is paid in advance for services orgoods that will be provided later. Fo

Misstatement of accounting information, Q. Misstatement of accounting infor...

Q. Misstatement of accounting information? The FASB describes materiality as the magnitude of an omission or misstatement of accounting information that in the light of surroun

Credit - accounting entry, Credit -- an accounting entry on the bottom or r...

Credit -- an accounting entry on the bottom or right of a balance sheet. Generally an increase inliabilities or capital or a reduction in assets. Opposite of credit is debit. Every

Describe the meaning of spin-off?, Spin off is making new company by sellin...

Spin off is making new company by selling or distributing the shares of existing company

What do you mean by note, Q. What do you mean by note? A note is an unq...

Q. What do you mean by note? A note is an unqualified written promise to pay another party the amount owed either when demanded or at a certain specified date habitually with i

Mr, 2. One never goes alone, hens operation research employs different tool...

2. One never goes alone, hens operation research employs different tools to accomplish: its own tasks, discus each and every tool employed by or throughout its doers.

The greenwood company purchased equipment costing, The Greenwood Company pu...

The Greenwood Company purchased equipment costing $900. Greenwood paid $400 in cash and agreed to pay the remaining amount in thirty days. As a result of this transaction

Create balance sheet and income statement, 1. Listed below are account bala...

1. Listed below are account balances taken from the adjusted trial balance of XYZ Inc. as of December 31, 2012.   Credit Account

Fifo under periodic inventory procedure, Q. FIFO under periodic inventory p...

Q. FIFO under periodic inventory procedure? The FIFO (first-in, first out) method of inventory costing suppose that the costs of the first goods purchased are those charged to

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