Retail
Buy-One-Get-One-Free (BOGO) Sale
Customer buys one item at full price and receives a second identical item at no charge.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Hand | Asset (+) | 116.00 | - |
| Sales Discounts (BOGO) | Contra-Revenue (+) | 100.00 | - |
| Sales Revenue (2 units at full price) | Revenue (+) | - | 200.00 |
| VAT Output Tax Payable (16%) | Liability (+) | - | 16.00 |
| Cost of Goods Sold (2 units) | Expense (+) | 110.00 | - |
| Merchandise Inventory | Asset (-) | - | 110.00 |
💡 Accountant's Note
BOGO promotions are recorded using the full price for both units. The free item's value is recorded as a discount. COGS reflects both units consumed regardless of the promotional structure.
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Expert Analysis by Qusai Ahmad
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