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