Sir, in which book of prime entry would discount allowed be recorded?
WIll it be the cash received or the sales day book?
Ask the Tutor ACCA FA
Sales day
In the cash received book (although they could use a separate discounts allowed book if they wanted to) - because it is when the cash is received that we know whether or not they are entitled to the cash discount.
Certainly never in the sales day book - when the sale is first made, we don't know whether or not they will be entitled to the cash discount.
Thanks a lot
You are welcome :-)
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