Trade discount: Seller of a product or service offers a reduction in the listed price of the product or service, such reduction is known as trade discount. Sales discount: Seller of a product or service offers a reduction in the ( accounts receivable ) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount. To explain: The difference between the trade discount and sales discount.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5, Problem 3RQ

To determine

Trade discount:

Seller of a product or service offers a reduction in the listed price of the product or service, such reduction is known as trade discount.

Sales discount:

Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.

To explain: The difference between the trade discount and sales discount.

To determine

Sales discount:

Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.

To describe: The location in which sales discounts are reported in the income statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Can you solve this general accounting problem with appropriate steps and explanations?

Please provide the accurate answer to this general accounting problem using valid techniques.

Hollister Athletic Equipment had a balance in the Accounts Receivable account of $780,000 at the beginning of the year and a balance of $820,000 at the end of the year. Net credit sales during the year amounted to $6,570,000.

Answer 2

Question

Chapter 5, Problem 3RQ

To determine

Trade discount:

Seller of a product or service offers a reduction in the listed price of the product or service, such reduction is known as trade discount.

Sales discount:

Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.

To explain: The difference between the trade discount and sales discount.

To determine

Sales discount:

Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.

To describe: The location in which sales discounts are reported in the income statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 5, Problem 3RQ

To determine

Trade discount:

Seller of a product or service offers a reduction in the listed price of the product or service, such reduction is known as trade discount.

Sales discount:

Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.

To explain: The difference between the trade discount and sales discount.

To determine

Sales discount:

Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.

To describe: The location in which sales discounts are reported in the income statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 5, Problem 3RQ

To determine

Trade discount:

Seller of a product or service offers a reduction in the listed price of the product or service, such reduction is known as trade discount.

Sales discount:

Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.

To explain: The difference between the trade discount and sales discount.

To determine

Sales discount:

Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.

To describe: The location in which sales discounts are reported in the income statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 5, Problem 3RQ

To determine

Trade discount:

Seller of a product or service offers a reduction in the listed price of the product or service, such reduction is known as trade discount.

Sales discount:

Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.

To explain: The difference between the trade discount and sales discount.

To determine

Sales discount:

Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.

To describe: The location in which sales discounts are reported in the income statement.

Answer 6

Chapter 5, Problem 3RQ

To determine

Trade discount:

Seller of a product or service offers a reduction in the listed price of the product or service, such reduction is known as trade discount.

Sales discount:

Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.

To explain: The difference between the trade discount and sales discount.

Answer 7

Chapter 5, Problem 3RQ

To determine

Trade discount:

Seller of a product or service offers a reduction in the listed price of the product or service, such reduction is known as trade discount.

Sales discount:

Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.

To explain: The difference between the trade discount and sales discount.

Answer 8

To determine

Sales discount:

Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.

To describe: The location in which sales discounts are reported in the income statement.

Answer 9

To determine

Sales discount:

Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.

To describe: The location in which sales discounts are reported in the income statement.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 5 - When recording a credit sale, what account do we...Ch. 5 - Prob. 2RQ Ch. 5 - Prob. 3RQ Ch. 5 - Briefly explain the accounting treatment for sales...Ch. 5 - Prob. 5RQ Ch. 5 - Prob. 6RQ Ch. 5 - 7.What two purposes do firms achieve by estimating...Ch. 5 - Prob. 8RQ Ch. 5 - 9.What are the financial statement effects of...Ch. 5 - Prob. 10RQ

Solution Summary: The author explains the difference between trade discount and sales discount. Trade discount is to change the existing list price without publishing a new price list or disguise actual price among the competitors.

Want to see the full answer?

Chapter 5 Solutions