sales discounts

Where Does Discount Allowed Come In Final Accounts?

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Where Does Discount Allowed Come In Final Accounts? Discount allowed acts as an additional expense for the business and it is shown on the debit side of a profit and loss account. Where does discount comes in final account? Cash discounts will go under Debit in the Profit and Loss account. Trade discounts are not

Does Sales Discount Have A Normal Credit Balance?

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Does Sales Discount Have A Normal Credit Balance? Revenue accounts typically have normal credit balances (credit to increase, debit to decrease) but Sales Discounts and Sales Returns and Allowances are contra-accounts because they are revenue accounts but have normal debit balances (debit to increase, credit to decrease). Is sales discount a credit balance? Definition of