When the seller offers a sales discount even if borrowing has to be done?

When the seller offers a sales discount even if borrowing has to be done?

When the seller offers a sales discount, even if borrowing has to be done, it is generally advantageous for the buyer to pay within the discount period. Most companies will not take a purchase discount, because 1% or 2% discounts are insignificant.

When the terms of sale include a sales discount it usually is advisable for the buyer to pay within the discount period?

When the terms of sale include a sales discount, it usually is advisable for the buyer to pay within the discount period. Sales Discounts and Sales Returns and Allowances both have normal debit balances. Merchandise is sold for $5,000 with terms 1/10, n/30.

When sales are made to customers who pay with bank credit cards such as MasterCard or Visa How are these sales treated?

Sales to customers who use bank credit cards, such as MasterCard and VISA, are generally treated as credit sales. The fees associated with credit card sales are periodically recorded as expenses. You just studied 23 terms!

What type of company would normally offer trade discounts to its customers?

Only the wholesalers are the correct answer. This is because the wholesalers are offering trading discounts to their customers.

Which of the following is a discount in the amount to be paid if the customer pays within a specified time period?

A cash discount representing a reduction in the amount to be paid by a credit customer if the customer pays within a specified period of time is also referred to as a(n) discount. Bell provides $500 of services to customers on account with terms 3/10, n/30.

What is subtracted from sales to arrive at net sales?

Net sales is what remains after all returns, allowances and sales discounts have been subtracted from gross sales. Net sales is usually the total amount of revenue reported by a company on its income statement, which means that all forms of sales and related deductions are combined into one line item.