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Old 10-11-2014, 11:45 AM   #1
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accounting students

help needed

question 1:
table cost 50
table selling price 500
discount 10% (aka 50)

how would you take in the double entry of discount?

dr cash 450
cr discount allowed 50?


question 2:
table cost 50
table selling price 500
free of charge

how would you take in the double entry of complimentary table?

TIA!!
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Old 10-11-2014, 12:02 PM   #2
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Q1 Accounting for Receivable when Discount is allowed to a customer. Explained with example.

Q2 not sure but I think there is no double entry since there is zero revenue because the $50 cost will be taken into account during stock take.
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