nasigorengman

how do you record this Admin Enterprise settled their account within the discount period.Before this there is another transaction: Sold merchandise on credit to Admin Enterprise, term 2/10, n/30, amounting to 3410 (GST Inclusive), cost price $2100But I wanna know how to record the first transactionhow did u get 62 as the sales discount, that's not 2 percent of 3410

Sandy8947

You didn't state the rate of GST. I shall presume it's 10%. That means the sale was $3,100 and GST was $310, making a total of $3,410. When the sale was made, your Accounts receivable $3,410Cr Sales $3,100Cr GST payable $310Dr COGS $2,100Cr Merchandise inventory $2,100When the account is settled within the discount period,Dr Cash $3,341.80Dr GST payable $6.20Dr Sales discounts $62.00Cr Accounts receivable $3,410