Trade discount: Seller of a product or service offers a reduction in the listed price of the product or service, such reduction is known as trade discount. Sales discount: Seller of a product or service offers a reduction in the ( accounts receivable ) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount. To explain: The difference between the trade discount and sales discount.
Trade discount: Seller of a product or service offers a reduction in the listed price of the product or service, such reduction is known as trade discount. Sales discount: Seller of a product or service offers a reduction in the ( accounts receivable ) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount. To explain: The difference between the trade discount and sales discount.
Solution Summary: The author explains the difference between trade discount and sales discount. Trade discount is to change the existing list price without publishing a new price list or disguise actual price among the competitors.
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
Chapter 5, Problem 3RQ
To determine
Trade discount:
Seller of a product or service offers a reduction in the listed price of the product or service, such reduction is known as trade discount.
Sales discount:
Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.
To explain: The difference between the trade discount and sales discount.
To determine
Sales discount:
Seller of a product or service offers a reduction in the (accounts receivable) amount to be paid by the customer, only if the customer makes payment within a specified period of time, such reduction is known as sales discount.
To describe: The location in which sales discounts are reported in the income statement.
Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's assets, Liabilities, and Equity?
Need answer general Accounting
Provide correct answer of this question answer general Accounting