ACCTG 101 Lecture Notes - Lecture 10: Inventory Control
Document Summary
Represent reduction in the amount a customer ultimately pays a vendor forg/s supplied. Means of adjusting actual price charged to a customer from a standard. E. g. manufacturer sell at list price to public, 40% discount off list price to retailer, 55% to wholesaler. Receiver/giver of discount record net amount of transaction, discount not in book. On nov 13, glomobile made a cash sale of 5 magic phone covers for a list price of each. Conditional adjustment after determining actual selling price of transaction. N/30 : net amount payable within 30 days. 2. 5/10 : 2. 5% deducted if payment made in 10 days. If sales totally made in april, deducted if made in 10 days. Discount allowed (expense) in crj of seller. Discount received (revenue) in cpj of purchaser. Abc ltd made a sale of to a customer, ddd ltd, on terms of 2/10, n/30 on 1 july. A record keeping choice not reporting choice.
