Discount allowed acts as an additional expense for the business and it is shown on the debit side of a profit and loss account. Trade discount is not shown in the main financial statements, however, cash discount and other types of discounts are supposed to be recorded in the books of accounts.
What is the Journal Entry for Discount Allowed? - AccountingCapital
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The discount allowed is the expense of the seller. Discount Received is an income of the buyer. Discount allowed is debited in the books of the seller. Discount Received is credited in the books of the buyer.
Discount Allowed and Discount Received - Journal Entries with ...
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Discounts allowed represent a debit or expense, while discount received are registered as a credit or income. Both discounts allowed and discounts received can be further divided into trade and cash discounts. The latter require double-entry bookkeeping.
What Does Discounts Received & Allowed Mean? - Small Business ...
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While posting a journal entry for discount received “Discount Received Account” is credited. Discount received acts as a gain for the business and is shown on the credit side of a profit and loss account.
What is the Journal Entry for Discount Received? - AccountingCapital
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