accounting students

[milorinodino]

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!!

 

[tryingtohelp]

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!!

Wow, old accounting knowledge not sure if I am right

Dr Cash 450
Dr discount allowed 50 (contra revenue)
Cr Revenue 500

Dr Inventory 50
Cr COGS 50

Part 2 I assume you giving the table away

Dr Discount allowed 500
Cr Revenue 500

Dr Inventory 50
Cr COGS 50