Retail

Bundle / Multi-Buy Promotion (3 for 2)

Customer buys three items in a 3-for-2 promotion, effectively getting one free.

Account NameTypeDebit ($)Credit ($)
Cash in HandAsset (+)232.00-
Sales Discounts (Bundle Promotion)Contra-Revenue (+)100.00-
Sales Revenue (3 Items at Full Price)Revenue (+)-300.00
VAT Output Tax Payable (16%)Liability (+)-32.00
Cost of Goods SoldExpense (+)165.00-
Merchandise InventoryAsset (-)-165.00

💡 Accountant's Note

Recording the promotion as a discount rather than a reduced price preserves the full revenue figure for analytics. Management can see both gross revenue and the cost of the promotion separately.

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Expert Analysis by Qusai Ahmad

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