Question

State whether discount received is an income or expense?

Answer 1

Answer:

Discounts allowed represent a debit or expense, while discount received are registered as a credit or income. Both discounts allowed and discounts received can be further divided into trade and cash discounts.

Answer 2

Discount Recieved is an income whereas discount allowed is an expense

Discount is given so that customer gives cash at time of purchase of goods and services , it is a kind of incentive which a seller gives to buyer and it is a expense for buyer and income for the seller.

When discount is recieved  it is an income for the one who is recieving it and expense for the one who is giving it.