Sales has three contra* Accounts

• 
• 19 Mar, 2021
• 0 Comments
• 21 Secs Read

Sales has three contra* Accounts

—Sales has three contra* Accounts

—Sales Returns & Allowances

—Discount Allowed

—Bad Debt Expense (this is probably better described as a selling expense)

—Inventory has one contra account

—Discount received

—When a discount is taken up then GST must be calculated as 1/11th of the discount amount (ie the discount is composed of 10 parts discount and 1 part GST)

* what are treated as contra accounts will depend on the chart of accounts