Companies could use this to manipulate earnings per year by allocating a higher estimate of discounts to one year, which would decrease profits and then allocate a smaller estimate of discounts the next year which would increase profits.
I feel like accounting for it the net way, and purposely "assuming" people will take a discount you actually know they won't, it's a great way to manipulate the numbers in an Earnings managements fashion. It's just a hunch.
I have a question. In the net method, when the customer doesn't use the discount, we credit the `other income`. Can't we credit the original `sales revenue` to include the missed $4 discount as regular income?
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This man is single handily helping me pass my accounting classes
School is useless when God gave us this guy.
I have to say you explained this better than my professor. Thank you!
I was doing this problem in my homework studies tonight, and blanked out on it. Thanks for this video, it truly helped
I cannot thank you enough!! you made it look easy
Thankyou so much you made it easy to understand bruhh, about to do my cma exams in 6 months . Please pray for me
Howd you do? What did you use to study?
Companies could use this to manipulate earnings per year by allocating a higher estimate of discounts to one year, which would decrease profits and then allocate a smaller estimate of discounts the next year which would increase profits.
Your videos make my day
Awesome. Thanks Max!
What u mentioned is early pay discount. How will price discount accounting work? Discounts during ordering itself?
Incredibly well-explained. Thanks!
I feel like accounting for it the net way, and purposely "assuming" people will take a discount you actually know they won't, it's a great way to manipulate the numbers in an Earnings managements fashion. It's just a hunch.
I'd say you taught it better than my professor but my professor doesn't teach at all lol
Can you make a video that combines sales discounts and accounting for sales returns and allowances?
Here's a link to videos on these topics: www.edspira.com/index-financial-accounting/
It is under "Lesson 6: Income Statement"
Thx a lot! It's super helpful
No problem!
I have a question. In the net method, when the customer doesn't use the discount, we credit the `other income`. Can't we credit the original `sales revenue` to include the missed $4 discount as regular income?
Great video! Thanks
Loved this!
Thanks Abdullah!
Thank you
Thanks!!!
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This is gold thanks a lot. Cheers
No problem!
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Thank you kind sir!
You're welcome. Thanks for watching!
Thank you sir!!
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