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 NameTypeDebit ($)Credit ($)
Cash in HandAsset (+)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 InventoryAsset (-)-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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