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Special Journals: Cash Receipts , Page 8

Recording Cash Received on Account after Cash Discount - Example

Use the following example to help you understand the procedure for recording a cash receipt transaction with a cash discount:
 
On January 12, Olympic received $2940 from Kevin Klein to apply an account. The source document for this transaction is receipt no. 103.

The image below displays the cash receipt and cash receipts journal entry for this transaction: 

cash receipt

 

cash receipts journal entry