Recording Cash Received on Account after Cash Discount
To record a cash receipt transaction with a cash discount, follow the steps listed below:
Step 1: Enter the date of the receipt in the Date column.
Step 2: Enter the receipt number in the Document Number column. Write the letter R before the receipt number.
Step 3: Enter the name of the customer in the Account Name column.
Step 4: In the Accounts Receivable Credit column, enter the amount of the original sales transaction (the amount that was debited in the sales journal) less any related sales returns or allowance.
Step 5: Enter the cash discount amount in the Sales Discounts Debit column.
Step 6: Enter the amount of cash received in the Cash in Bank Debit column.
The image given below indicates each step using the corresponding step number.