Question

No journal entry is made for..........
1. Brokerage
2. Cash discount
3. Trade discount 4. Commission

Answer 1

Answer:

3 trade discount is the correct answer.

Answer 2

Trade discount

Trade discount refers to the decreased list cost known as markdown, permitted by a provider to the shopper while offering the item for the most part in mass amounts to the concerned purchaser to build the deals of the business as more clients are drawn in when the rebate is given on the rundown cost of the item. This rebate is normally permitted by the vendors to draw in more clients and get the request in mass, i.e., to build the number of deals. So, no record is to be kept up within the books of records of both the purchaser and merchant.