Creditors Allowances Question

by Mo
(South Africa)

Q: Where does the creditors allowances go?



Comments for Creditors Allowances Question

Click here to add your own comments

creditors control
by: Anonymous

When you do income statement, where does creditors allowances go?
Creditor Allowances
by: Babar Khan

I guess it goes in the Sales location as a sales allowances/discounts, allocated on your Income Statement.

It is discounts and allowances are offered by the Creditor/lending party to the Debtor/borrower party to motivate the borrower party for payments.

Creditor Allowances means he/she is offering type of allowances/discounts to the borrower party or buyers on product and services.

The information you receive should move to Sales Allowances and Discounts Journals.

You will show this Discounts as a Profit in Cost of Goods Sold if you are a Merchandiser, and as a Loss in Net Sales if you are Sales Agent.

So this amount is due/accrued as an Account Receivable. To adjust the bad debts, allowances/discounts rates are offered by the Lending Party to the Borrower Party.
answe
by: Anonymous

It goes where l also need to know
Creditors allowances
by: Lindiwe

When you do income statement, where does creditors allowances go?

Click here to add your own comments

Return to Ask a Question About This Lesson!.



Enjoying this Website?
Help Support it with a Donation

OR...

Advertise on Accounting-Basics-for-Students.com

© Copyright 2009-2016 Michael Celender. All Rights Reserved. Click here for Privacy Policy.

SBI
SBI!

privacy policy