Creditors Allowances Question

by Mo
(South Africa)

Q: Where does the creditors allowances go?



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creditors control
by: Anonymous

When you do income statement, where does creditors allowances go?

Creditor Allowances
by: Babar Khan

I guess it goes in the Sales location as a sales allowances/discounts, allocated on your Income Statement.

It is discounts and allowances are offered by the Creditor/lending party to the Debtor/borrower party to motivate the borrower party for payments.

Creditor Allowances means he/she is offering type of allowances/discounts to the borrower party or buyers on product and services.

The information you receive should move to Sales Allowances and Discounts Journals.

You will show this Discounts as a Profit in Cost of Goods Sold if you are a Merchandiser, and as a Loss in Net Sales if you are Sales Agent.

So this amount is due/accrued as an Account Receivable. To adjust the bad debts, allowances/discounts rates are offered by the Lending Party to the Borrower Party.

answe
by: Anonymous

It goes where l also need to know

Creditors allowances
by: Lindiwe

When you do income statement, where does creditors allowances go?

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