Question

Is a sales discount a debit or credit?

Answer 1

If the buyer pays within 10 days, the seller will record a debit to Cash for $891, a debit to Sales Discounts for $9, and a credit to Accounts Receivablefor $900. The account Sales Discounts is referred to as a contra revenue account.

Answer 2

the buyer pays within 10 days, the seller will record a debit to Cash for $891, a debit to Sales Discounts for $9, and a credit to Accounts Receivablefor $900. The account Sales Discounts is referred to as a contra revenue account.