Discounts Given - Goods/Units

<p>Trade discount - this allowed at the time of sales invoice.<br />

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Sales discounts are not reported as an expense. Rather, sales discounts are reported as a reduction of gross sales. In other words, Sales or Gross Sales minus Sales Discounts and Sales Returns and Sales Allowances = Net Sales.

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Cr Sales

Dr Accounts Receivable

Dr Discount Allowed

To record a sale where the discount is recognised at the date of sale

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Trade discounts are typically provided to stimulate sales.</p>