Available under Creative Commons-NonCommercial-ShareAlike 4.0 International License.
When a buyer takes advantage of a cash discount, Cash and Sales Discount should be debited, and Accounts Receivable should be credited.
Example: Invoice for $950 with terms 3/15, n/30 is paid early by the buyer.
Debit Cash $921.50
Debit Sales Discounts $28.50
Credit Accounts Receivable $950
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