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Here is a quick lesson on accounting for sales discounts! Students are often confused by how credit terms are stated, so I explain how to interpret this. I then explain how to make the journal entries to account for the initial sale and customer payment. Remember Sales Discount is a contra-revenue account (increases with debits). #accounting #study #studytok #studywithme #educational #learnontiktok #fyp #foryou #accountant #accountancy
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In intro accounting, half the battle is knowing the vocabulary! One important term is “normal balance”. When we say normal balance we are referring to whatever (debit or credit) will INCREASE that account’s balance. Saying we have a “contra” account (like “contra-asset”) just flips the normal balance side to the opposite (so a normal balance for a contra-asset is credit because the normal balance for an asset is debit). #accounting #study #unitok #fyp #foryou
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