Retail
Supplier Invoice — Early Payment Discount Captured
Paying a supplier early within the discount window to capture a 2% settlement discount.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Payable (Supplier) | Liability (-) | 10,000.00 | - |
| Cash / Bank | Asset (-) | - | 9,800.00 |
| Merchandise Inventory (Cost Reduction) | Asset (-) | - | 200.00 |
💡 Accountant's Note
Early payment discounts reduce the effective cost of inventory. The JOD 200 saving is credited back to inventory under the net method — it lowers COGS when those goods are sold.
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