Why do businesses often offer "Sales Discounts" to their customers?

Q: What is a sensible credit period? Should the credit period for your company's sales vary depending…

A: Credit period is the days that a customer is allowed to wait before paying the invoice. There is no…

Q: The business needs to record the trade discount in the book of account”. Question Do you agree…

A: Discount means the amount which is not required to be paid or received. Discount is deducted to find…

Q: When a customer returns goods, the merchandiser will:

A: Inventory:   Inventory refers to the raw materials, work-in process, and the finished goods…

Q: If a wholesale company provides a discount to NetSolutions for early payment of purchases of…

A: Purchase discount is discount availed by purchaser on early payment of purchases of merchandise on…

Q: Some business transactions purchase goods and services from the seller, on credit. The buyer of…

A: Purchase of Merchandise on Account - Purchases on Accounts means Inventory purchase without paying…

Q: How do sellers benefit from allowing their customers to use credit cards?

A:

Q: Manufacturers, distributors, wholesalers, and retailers usually sell goods on credit rather than for…

A: Discount is given by seller to the buyer of goods and services. Discount reduces the amount of…

Q: What are the ways that payments by a seller to a customer is done?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: When a customer (buyer) returns merchandise purchased on credit,what is to be done?

A: Sales Returns: It is the merchandise returned by a buyer to a seller due to many reasons like excess…

Q: Demonstrate, using practical example how to prepare accounts from the Sales day book and Sales…

A: The sales day book is a manually-maintained ledger in which is recorded the key detailed information…

Q: Why wouldn't a service business have a "Sales revenue" account?  They are just selling their…

A: THE REVENUE IS THE FIRST SECTION OF AN INCOME STATEMENT AND IT CONTAINS BOTH THE REVENUE GENERATED…

Q: What is the nature of (a) a credit memo issued by the seller of merchandise, (b) a debit memo issued…

A: (a) A credit memo issued by the seller of merchandise.A credit memo is a commercial document that is…

Q: Will a store proprietor business can achieve a vast amount of profit?

A: A store proprietor business can not  achieve a vast amount of profit because of the following…

Q: 1. What would a credit manager do if a sales order received caused a customer to exceed its credit…

A: The credit manager should disapprove the sales order as it will increase the collection period…

Q: What are the reasons that a company gives trade discounts?Why are trade discounts not recorded in…

A: A reduction in list or catalog price which is granted by the supplier of goods/services can be…

Q: separate account for sales returns and allowances useful to management? If you owned a…

A:

Q: Walmart receives discounts from suppliers because it purchases large volumes of merchandise. Is this…

A: Walmart is able to purchase a large volume of each goods or merchandise and the supplier provides a…

Q: If you are the seller will you provide discount for customers? Why or why not? What type of discount…

A: solution concept                 In the trade transaction ,the practice of giving and taking…

Q: What would a credit manager do if a sales order received caused a customer to exceed its credit…

A: When orders are received from new customers, the system automatically accesses the credit rating…

Q: how do you get sales revenue?

A: Required  How do you get sales revenue?

Q: plain why it is important for a company to keep track of how much money in discounts is given out?…

A: . Percent of cash discount since 3/15, n/45 is the credit term between the seller and buyer which…

Q: How much is the purchase discounts? How much is input tax on purchases? How much is input tax to be…

A: Input tax is the amount of tax which a business pays it to the vendors on the purchasing of the…

Q: A retailer pays for purchased merchandise within the discount window. The retailer would recognize…

A: Accounts Payable - Accounts Payable is the creditor for the company. Company owed some amount for…

Q: Is there a significant difference between adjusting and closing for a service firm and a merchandise…

A: Merchandise Company is a company that purchases finely finished goods and commodities and later…

Q: Are net sales = Sales less? a. Sales returns b. Sales discounts c. Sales returns & allowances d.…

A: Gross sales minus returns, allowances, and discounts equal net sales. If net sales are reported…

Q: Please tell us about Sales Discounts.  Why are they necessary?  Does this account appear on the…

A: Discount is the amount of reduction in the value of sale or purchase. In other words, discount in…

Q: Which account does a merchandiser use that a service company does not use? Cost of Goods Sold…

A:

Q: When should companies that sell gift cards to customers report revenue?

A: The Answer

Q: When a store purchases merchandise, why are individual departments not allowed to directly deal with…

A: Internal control helps an organization to safeguard its objectives. It helps to reduce risk and…

Q: the discount that is being acquired

A: First option is wrong because the cash discount is the discount given by the seller to the buyer for…

Q: Sellers use two methods in practice that simplify the process of recording sales discount. What are…

A: Sales:   Sales is an activity of selling the merchandise inventory of a business.

Q: Why do you think businesses extend credit to customers thereby creating accounts receivable?

A: Account receivable means where goods has been sold on credit and amount has not been received.…

Q: Which of the following journal entry is correct for the transactions of goods returned by a…

A: When we make a sales to customer, we pass the following entry:- Trade receivables  Dr           To…

Q: What is the difference between a sales discount, a sales return and a sales allowance?

A: A contra account is an account whose balance is opposite of the general or usual balance of that…

Q: A seller generally records sales at the full invoice price, butthe buyer often records purchases at…

A: A seller generally records sales at full invoice price, but buyer often records purchase at net…

Q: 1) What is the difference between a debit memorandum and a credit memorandum? 2) What is the…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Why would the inventory turnover ratio be more important for someone analyzing a grocerystore chain…

A: Inventory turnover ratio means how many times the inventory is turned in a year. It is expressed in…

Q: What is the purpose of the Purchase Returns and Allowances account? Why not just record a purchase…

A: Purchase accounts are used in periodic inventory system as a general ledger account in which…

Q: Explain in detail different types of documentation that the business would expect to change hands in…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Manufacturers, distributors, wholesalers, and retailers usually sell goods on credit rather than for…

A: The invoice of a transaction includes the terms of payments and the amount of the transaction.…

Q: Which of the following would not result in a reduction of the amount invoiced to a customer when a…

A: The discount decreases the amount of payment to be paid to creditors or to be received from…

Q: What happens when a client (buyer) returns credit-purchased goods?

A: The Answer:

Q: A cash (sales) discount is usually granted to all of the following except a. retail customers. b.…

A: Discount: It refers to the amount or percentage deducted from selling price of the goods at the time…