852 – Cash Discount Allowed

Deductions From Income

Synopsis

Account 852

Debits

Credits

  1. Discounts allowed to credit customers for payment of charges within discount period.

  2. Discounts allowed for cash payments versus credit card or charge account payments.

 

 

Remarks:

This account should only be used by retailers offering discounts for early payment to their charge customers.

 

Discounts related to service coupons should be charged to Account 49 – Advertising Service, Parts & Body Shop.