we record trade discount allowed in journal entries???
Dear Student,
Trade discount is the discount allowed when sales is made in bulk to a particular trader.
This discount allowed is not recorded in Journal entries. It is just subtracted from original sale amount & the net sale amount is recorded into the books.
Discount which is recorded into the books/ledger is Cash discount.
Regards
Trade discount is the discount allowed when sales is made in bulk to a particular trader.
This discount allowed is not recorded in Journal entries. It is just subtracted from original sale amount & the net sale amount is recorded into the books.
Discount which is recorded into the books/ledger is Cash discount.
Regards