[vodrldnr]

under gross method, is purchase discount account contra asset account ? (when cash paid with in discount term)

seems like purchase discount reduce the original purchase account when recored purdahs at full cost and get the discount later by paying cash early.?

am I right ???

[HushedChoas]

From my understanding a purchase discount is always a contra-expense account to the Cost of Goods Sold.

[jeff]

vodrldnr – instead of creating a new topic for each question that pops up for FAR – please post in the FAR study group.

New topics are more for discussions vs random questions about topics – which is more for the study group.

Imagine if everyone posted a quick question about every topic they came across – the forum would be unreadable.

Also – please capitalize the first letter of your post titles.

It messes with my OCD and I'm tempted to fix it each time. 🙂

Thank you

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[vodrldnr]

@ Jeff – another71.com ,Oh it's Jeff. Okay I am sorry for messing up. I did not know the rule. thank you

[Author]

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