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Former Member
Jul 19, 2008 at 02:15 AM

Vendor discounts

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Can someone please explain me what account should be established "Cash discount taken" or "Cash discount lost" if the vendor discounts are tracked at gross. And which account "Cash discount taken" or "Cash discount lost" to create if the vendor discounts are tracked at net.

Please also explain why would that the particular cash discount account be established for each tracking type (net and gross).

Explain with example

Thankyou very much