Hi My Dear Tutor, i need help
Your organization sold goods to PQ for 800 less trade discount of 20% and cash discount of 5% for payment within 14 days.the invoice was settled by cheque five days later.which one of the following gives the entries required to record BOTH of these transactions?
800*80=640
640*95=608
trade discount allowed will be 160
debit discount allowed-160
credit trade receivable-160
cash discount allowed is other expense
debit expense-32
credit cash-32
how we can consolidate both 640 and 608 by giving double entries?stucked here((
8y ago#1Again, why are you attempting questions for which you do not have answers?
I explain the entries for this in my free lectures on control accounts.
The sale is recorded as debit receivables 640 and credit sales 640.
The cash received is recorded as debit cash 608 and credit receivables 608.
The cash discount is recorded as debit other expenses 32 and credit receivables 32.
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