Rebecca sells inventory to a customer
for R100 and offers 10% prompt settlement discount.

How would you record it if is probable
that the customer will not
take advantage of the discount?

Question

Rebecca sells inventory to a customer
for R100 and offers 10% prompt settlement discount.

How would you record it if is probable
that the customer will  not 
take advantage of the discount?

Answer

(d) Dr Trade
receivables          10,      Cr discount received        10

Answer

(c) Dr Trade receivables     100,     
Cr Sales                            
100

Answer

(a) Dr   Bank                           100,     Cr Sales                            100

Answer

(b) Dr Trade receivables       90,     
Cr Sales                              
90

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