Regarding cash discounts, what is a cash discount?

If the payment is received within 10 days, the cash discount of 10,000 * 2% = 200 will be included in the financial expenses; If the payment is received within 20 days, the cash discount 10000*1%=100 will be included in the financial expense, if it exceeds 20 days, there will be no cash discount;

The income is 20,000 in the same way, within 10 days, 20,000*2%=400, within 20 days, 20,000*1%=200, more than 20 days, there is no cash discount.

A cash discount is a payment term for both parties to the transaction. The conditions for the cash discount are 2 10, 1 20, n 30;

10 i.e. 2 cash discount offer if payment is made within 10 days 20 i.e. 1 cash discount offer if payment is made within 20 days; (3), n 30 i.e. if payment is made within 30 days, there is no cash discount;

If the sales revenue is 10000

Debit: Accounts receivable 11700

Credit: main business income 10,000

Tax Payable - VAT Payable (P) 1700

If the cash discount is 2 10, the entry when the account is received is:

Debit: Bank deposit 11466

Finance Charges 234

Credit: Accounts receivable 11700

If the cash discount is 1 20, the entry at the time of receipt of the account is:

Debit: Bank deposit 11583

Finance Charges 117

Credit: Accounts receivable 11700

If the cash discount is n 30, the entry when the account is received is:

Borrow: Bank deposit 11700

Credit: Accounts receivable 11700

When the income is 20,000, it's the same!

You have to specify what day it will be on sale in May!

Cash discountsThere are 2 10, 1 20, n 30, which respectively represent: if the buyer pays within 10 days, then the seller will give a discount of 2% of the total price, if the buyer pays within 20 days, the seller will give a discount of 1% of the total price, and if the other party pays within 30 days, no discount will be given.

There are two ways to deal with cash discounts in accounting, one is the total price method and the other is the net price method. But our accounting law.

It is expressly provided that the lump sum method is used for cash discounts.

Cash discounts and commercial discounts.

Differences: 1. Different purposes: debt deductions made by cash discount toast merchants in order to motivate consumers to pay in advance; The commercial discount is mostly deducted for the purpose of carrying out ** activities for the goods;

2. The time when the discount occurs is different: the cash discount is after the sale of the product, after the sales revenue is recognized.

It is not possible to determine the discount, but it depends on the specific situation of the consumer at the time of payment. And the commercial discount is already clear when the product is sold.

The above content refers to Encyclopedia - Cash Discount.

Cash discountsThere are three discount conditions, which are also the calculation method of cash discounts, which are 2 10, 1 20, n 10 refers to the customer can enjoy a 2% cash discount on the product when paying within 10 days, and the use of the original **minus 2% of the product ** is the existing product** 20 refers to the customer can enjoy a 1% cash discount on the product when paying within 20 days, and the use of the original **minus 1% of the product** is the ** of the existing product; 3. N 30 means that there is no discount for customers to pay within 30 days.

Extended information: Cash discount, also known as sales discount, is a preferential way for merchants to reduce goods and seek benefits for customers in order to encourage buyers to buy quickly and pay for the relevant assets. Common cash discounts are 20, N 30.

Cash discount is a very important factor in the financial management of enterprises, and for enterprise sales, cash discounts play a very significant positive significance: it can not only shorten the collection time of merchants, but also reduce the bad debt losses of merchants.

At the same time, cash discounts also have a certain negative impact, and business cash discounts reduce corporate financial expenses.

Actual cash flow included in the company.

There will be less. Cash Discounts Cash discounts are deductions given to encourage purchasers to pay early within a certain period of time. For example, 2 10, net 30 (2 10, net 30), means:

If payment is made within 10 days, the purchaser will receive a 2% discount on the face value of the invoice. Otherwise, pay the full amount of the invoice within 30 days. And, it is often noted or understood that the interest charge will increase after the 30-day credit term.

Cash discount is the accounting method of enterprise financial management Xiangxiang Xiaoli Total price method, net price method and allowance method.

The total price is a good way to record accounts receivable.

and Sales Revenues Quick Navigation Accounting Methods Accounting Reports.

Differences in Handling Examples Introduction Cash discount is an important factor in the financial management of enterprises, and for sales enterprises, cash discounts have two positive significance: shorten the collection time and reduce the loss of bad debts. The negative effect is to reduce cash flow, because the discount partially offsets the finance costs, and the actual money received is less.

As a result, selling businesses are trying to put the discount rate.

Determine above the level of balancing the positive and negative effects. Generally speaking, if the purchasing enterprise enjoys this cash discount, it means that the purchasing company is ready to give up the right to use 29,400 yuan within 50 days in order to obtain a 2% discount, i.e. 30,000*2%=600 yuan, which is equivalent to bearing the interest cost of annual interest. 1. If the purchasing company has idle funds or can raise idle funds with an annual interest rate of less than the annual interest rate, it is advantageous to enjoy this cash discount, and 2. If the purchasing company has a shortage of funds, and in the remaining 50 days it raises the interest cost of 29400 at the commercial interest rate or the purchasing company uses 29400 to invest other opportunity costs.

1. Cash discounts.

The calculation formula is as follows: if the cash discount is 2 10, 1 20, n 3 means: 1-10 days to receive the payment, the discount is 2%, the cash discount = price (+ VAT) * 2%, the actual collection should be:

Price (+ VAT)* (1-2%). If the payment is received within 11-20 days, the discount is 1%, and the calculation is the same as above. If you receive the money more than 21 days, you will not enjoy the deduction.

2. The discount base package does not include VAT, which depends on the agreement between the two parties, and there is no hard and fast rule. But no matter how the discount is, the seller has to pay the tax in full. Cash discounts incurred are charged to finance charges.

Extended Materials. 1. Cash Discounts and Commercial Discounts.

The difference. 1. The purpose is different. A cash discount is a debt deduction given to encourage customers to pay early; A commercial discount is a **deduction that is given to boost sales.

2. The time when the discount is different is different. Cash discounts occur after the sale of goods, and businesses recognize sales revenue.

the relevant cash discount cannot be determined, and whether the cash discount occurs after the sale shall be subject to payment by the buyer; The commercial discount has already occurred at the time of sale, and when the enterprise sales are realized, as long as the sales revenue is recognized according to the net amount after deducting the commercial discount, there is no need for accounting treatment.

3. Commercial discount tax treatment. The State Administration of Taxation Guo Shui Fa [1993] No. 154 stipulates that: "If a taxpayer sells goods at a discount, if the sales amount and the discount amount are indicated separately on the same invoice, VAT may be levied on the discounted sales amount;If the discount amount is invoiced separately, the discount amount shall not be deducted from the sales amount, regardless of how it is financially treated.

4. Therefore, in tax practice, special attention should be paid to the point that "the sales amount and the discount amount must be indicated separately on the same invoice". The reason why it is necessary to stipulate that the sales amount and the discount amount must be indicated separately on the same invoice for commercial discounts is considered from the perspective of ensuring the consistency of VAT taxation and tax deduction. If one sales invoice is allowed for sales and another red invoice for refund of the discounted amount, the seller may be allowed to calculate the output tax based on the sales amount after deducting the discounted amount.

However, the purchaser deducts the sales amount without deducting the discount. This confusion in the calculation and collection of VAT is not permitted by the tax law.

5. In addition, the commercial discount is limited to the discount of the goods, if the seller uses the goods commissioned by the brother for processing or purchase for the discount in kind, the amount in kind cannot be deducted from the sales of the goods, and the goods in kind shall be calculated and paid in accordance with the "free gift to others" in Article 4 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-Added Tax.

Cash discountsThe conditions are generally: 2 10, 1 20, n 30;

2 10 is to pay within 10 days, only need to pay 98% of the original price;

1 20 is 99% off within 20 days;

n 30 means that there is no discount, that is, there is no discount if you have not paid for more than 30 days.

A cash discount is a discount given by a business to entice customers to pay in advance. The higher the cash discount, the more customers will pay in advance, but it will reduce the profit of the business.

The credit period is the maximum amount of time a business allows a customer to go from the time of purchase to the time of payment. The longer the credit period, the more conducive it is for the enterprise to sell goods, but it will occupy funds and increase the loss of bad debts.

possibilities. The discount period is the time when the business gives the customer a cash discount, and the customer can only get the cash discount if they pay during this period.

Credit terms are payment requirements made by businesses to customers in order to encourage them to pay as soon as possible, including credit periods, cash discounts, and discount periods.

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However, because China's new enterprise accounting standards require the use of the total price method for accounting, and the net price method is not allowed, the current commonly used calculation methods are the following two types: 1. Allowance method: when selling goods, Shenyou records accounts receivable with invoices, and records sales revenue at the net price after deducting cash discounts, and sets up a provision account "allowance sales discount" to reflect cash discounts, and "allowance sales discount" refers to the offset account of accounts receivable.

2. Total price method: when selling goods, the accounts receivable and sales revenue are recorded at the same time as the invoice**, and the cash discount is not considered. Sales discounts are included in the income statement as a finance expense.

Here's how the cash discount is calculated:

Cash discount refers to a kind of reduction and exemption given to consumers by merchants when selling goods. This discount is given back to the consumer in the form of cash, usually deducted directly from the total price of the item at checkout.

The calculation method of the cash discount is simple, it only needs to be calculated according to a certain percentage or amount reduction. For example, if the merchant gives a "buy more than 50 yuan minus 5 yuan" activity, then as long as the total price of the goods purchased by the consumer exceeds 50 yuan, they can enjoy a cash discount of 5 yuan.

In addition, some merchants will also take the form of discounts to achieve cash discounts. For example, the "20% discount" means that the original 100 yuan of goods now only need to pay 80 yuan for Qizi. This method can also be seen as a cash discount, as in fact, the merchant is giving the consumer a discount by reducing the selling price.

In addition to the above two ways, there is also a common way to cash out in cashback. For example, "10 yuan back over 100 yuan" means that when consumers buy goods, the merchant will first collect the full payment, and then return 10 yuan in cash to the consumer within a certain period of time.

Sometimes, merchants will also use a combination of methods to achieve cash discounts. For example, "buy over 100 yuan and get a 20% discount, and then get a 10 yuan voucher" is to use both the discount and cashback at the same time.

Overall, cash discounts are a very affordable means of discounting the financial burden on consumers and promoting the sale of goods. It is also an important marketing strategy for merchants to increase brand awareness and loyalty.

The cash discount refers to the debt deduction provided by the creditor to the debtor in order to encourage the debtor to pay within the specified time limit, and is a kind of preferential treatment provided by the seller to the customer in order to urge the customer to pay off the payment as soon as possible. The essence of cash discount is the cost incurred by the enterprise in order to recover the funds occupied by the customer in advance, which is a financing expense.

The cash discount is expressed as follows: 2 10, 1 20, n 30, that is, payment within 10 days, 2% discount on the payment; Payment within 20 days, 1% discount on the purchase price, otherwise, full payment within 30 days.

Algorithm for cash discounts:

For example, the example 2 10-1 20--n30 (2 10, net 30) means that if the payment is made within 10 days, the buyer will receive a 2% discount from the face value of the invoice. If payment is made within 20 days, the purchaser is able to receive a 1% discount on the face value of the invoice.

Otherwise, pay the full amount of the invoice within 30 days.

In the question, after 16 days of payment, the buyer can get a 1% discount from the face value of the invoice. i.e. a discount of 100 yuan.

The actual amount received by the enterprise should be 10,000-1,700-100=8,200 yuan.