Discount allowed as represented in the control account appears on the?
Question 1 Report
Discount allowed as represented in the control account appears on the?
Answer Details
Discount allowed is a reduction in the amount of money owed by a customer for a purchase made on credit. Therefore, it is an expense for the seller, and it reduces the amount of revenue earned from the sale.
Discount allowed is recorded in the individual customer's account in the sales ledger, which is then totaled and posted to the credit side of the general ledger control account for sales.
The control account is used to keep a summary of all the transactions in the subsidiary ledger, and it acts as a check to ensure that the total of the individual customer accounts equals the balance in the control account.
Therefore, the answer is that discount allowed is recorded on the credit side of the sales control account, which represents the total sales revenue earned by the company.
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