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Mr. P purchase goods from Ms. B 10,000.- by cash receive 10% discount.
Trade discount
Condition F.O.B. Destination account name will be recorded as............
Transportation - Out
Condition F.O.B. Shipping point account name will be recorded as............
Transportation - In
...
Trade discount
2/10 , n/45
Cash discount
“Transportation - in”. Classified as
Cost of sales
“Transportation - out”. Classified as...........
Selling expense
The seller is responsible for paying all shipping costs.
Destination
The buyer is responsible for paying all shipping costs.
Shipping point
Credit only.
Cash discount
Calculate discounts on the payment due date.
Cash discount
It can be by cash or credit.
Trade discount
Not be recorded.
Trade discount
Incentive for buyers that have bulk orders.
Trade discount
The account name under Seller will be recorded cash discount is............
sale discount
The account name under Buyer will be recorded cash discount is .........
Purchase discount
Immediate discount on the day of purchase or sale of products.
Trade discount
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