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