Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 23 - No. 12)
When a business offers a trade discount, how is the sale ultimately recorded in the accounting system?
At the list price.
At the net price after the discount.
Both the list price and the discounted price are recorded.
The discount is added to the cost of goods sold.
Explanation
Sales are recorded at the net amount, which is the list price less any trade discounts.
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