Page 74 - F3 -FA Integrated Workbook STUDENT 2018-19
P. 74
Chapter 5
2.5 Settlement discount offered to a customer
Early settlement discount
offered to customer
Customer Customer not
expected to expected to
settle early settle early
Deduct settlement Do not deduct settlement
discount when preparing discount when preparing
invoice invoice
Customer does Customer Customer
Customer not settle early settles early
does not
settles early Dr Cash Dr Cash settle early
Dr Cash Dr Revenue Cr Receivable
Dr Cash
Cr Receivable Cr Receivable Cr Revenue Cr Receivable
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