Question

Which type of account is discount account?

Answer 1

In this case, the seller can simply record the sales discounts as they occur, with a credit to the accounts receivable account for the amount of the discount taken and a debit to the sales discount account. The sales discount account is a contra revenue account, which means that it reducestotal revenues.

Answer 2

nominal

The discount is a nominal account. The discount expense and discount income are recorded on the debit side and credit side of the treble column cash book respectively.