Cash Discount, Sales Discount And Sales Return

(1) cash discount

1. cash discount concept

Cash discount refers to the deduction of debt provided by the creditor to the debtor in order to encourage the debtor to pay within the prescribed time limit.

2. accounting treatment of cash discount

Cash discounts are included in current profits and losses when they actually occur.

(two) sales discount

1. sales Allowance Concept

The sale discount refers to the concessions granted by the enterprise on the selling price due to the unqualified quality of the goods sold.

2. accounting treatment of sales allowances

Enterprises have confirmed sales. commodity Where sales of goods sold for sale are discounted, the sales proceeds of the current period should be reduced at the time of occurrence. If sales discount is part of the balance sheet date, the accounting standards for Enterprises No. twenty-ninth - balance sheet date will apply.

(three) sales return

1. concept of sales return

Sales return refers to the return of goods sold by enterprises because of the quality and varieties that do not meet the requirements.

2. accounting treatment for sales returns

The enterprise has confirmed that the sale of the proceeds from the sale of the merchandise has been returned to the sales, and the sales proceeds of the current period should be reduced at the time of occurrence. If the sales return is a matter after the balance sheet date, the accounting standards for Enterprises No. twenty-ninth - balance sheet date will apply.