Purchases Discount
Purchases Discount is a contra-cost account in the general ledger that records discounts offered by vendors of merchandise for prompt payment of purchases by buyers.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Purchases Discount. A contra-cost account in the general ledger that records discounts offered by vendors of merchandise for prompt payment of purchases by buyers.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
