Retail
Trade-In Allowance on Purchase
A customer brings in an old item and receives a trade-in discount on a new product.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Hand | Asset (+) | 290.00 | - |
| Used Goods Inventory (Trade-In) | Asset (+) | 50.00 | - |
| Sales Revenue | Revenue (+) | - | 293.10 |
| VAT Output Tax Payable (16%) | Liability (+) | - | 46.90 |
💡 Accountant's Note
The trade-in value is treated as partial payment. The used item enters inventory at its estimated resale value. The full retail price of the new item is the revenue base for VAT.
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