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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › DISCOUNT RECEIVED
Within which heading in the statement of profit or loss would discounts received be included?
Cost of sales
Sales revenue
Administration expenses
Trade discounts received are not recorded separately (because the purchases is recorded net of the discount).
As regards discount for early payment are concerned, there is no ‘rule’ but are better recorded under the heading of administration expenses (as a negative expense).
