Question

If I am required to record sales assuming that customers will take the discount, what do I do if they don’t take the discount and I receive payment for the full price? How do I record it?

Answer 1

There are 2 mthod 2 book Sales as per Gross Method and as per Net Method.

In cases of Gross Method: Sales would be booked on Gross Sales price and discount should be ignore and booked on the basis of actual passed on.

In Case of Net Method, Sales would be booked on Net Sales price after adjusting for dicount , and if discount will not to be pass on at the time of payment made then it should be debited.

Please refer Journal Entry for aforesaid 2 method.

Date	Accounting titles & explanations	Debit	Credit
	As per Net Method
a)	Account Receivable (Sales Value - Discount)	XXX
	Sales Revenue		XXX
b)	Cost of goods sold	XXX
	inventory		XXXX
c)	Cash	XXXX
	Sales discount forfeited		XXX
	Account receivable		XXX
	Gross method
a)	Account Receivable ( Full Sales Value)	XXX
	Sales revenue		XXX
b)	Cost of goods sold	XXX
	inventory		XXX