Retail
Sales Discount Taken by Customer
Recording the reduction in cash received when a customer pays early (e.g., 2/10, n/30).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Asset (+) | 980.00 | - |
| Sales Discounts | Contra-Revenue (+) | 20.00 | - |
| Accounts Receivable | Asset (-) | - | 1,000.00 |
💡 Accountant's Note
Sales Discounts is a contra-revenue account. It reduces the 'Gross Sales' to 'Net Sales' on the Income Statement.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.