Accounting entry of cash discount
Debit: accounts receivable
Loan: income from main business (cash discount not deducted)
Taxes payable-VAT payable (output tax)
Debit: bank deposit
Financial expenses (actual cash discount)
Credit: accounts receivable
What are accounts receivable?
Accounts receivable refers to the money that an enterprise should collect from the purchasing unit when selling goods, products and providing services in the normal course of business, including the taxes and fees that should be borne by the purchasing unit or the labor receiving unit, the packaging fees paid by the purchasing party and various transportation and miscellaneous fees. In addition, in the case of sales discount, factors such as commercial discount and cash discount should also be considered. Accounts receivable is a kind of creditor's right formed with the sales behavior of enterprises. Therefore, the confirmation of accounts receivable is closely related to the confirmation of income. Accounts receivable are usually recognized at the same time as income. This course sets up detailed accounts for detailed accounting according to different units that purchase or accept labor services. The borrower of accounts receivable represents the accounts receivable of the enterprise, and the lender represents the accounts received in advance by the enterprise.
What is the income from the main business?
Main business income refers to the operating income obtained by enterprises engaged in production and business activities in this industry. The main business income includes the sales of manufacturing products and semi-finished products and the provision of industrial services; Income from commodity sales by commodity circulation enterprises; Ticket income, tourist income, catering income of tourism service industry, etc. The income from the main business belongs to the profit and loss category, with the debit indicating a decrease and the credit indicating an increase.