Cash Discounts are reductions for credit customers to incentive quick payments. For instance, when billing, you may see a 2/10, n/30 meaning you are providing a 2% discount for payments before 10 days and no discount, with payment due on the 30th. For Cash Discounts, you have the Gross or Net Method of accounting for it. Gross Method records the invoices at full price, where the Net Method records it at the discounted price.
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