Definition Cash Discounts - purchases

Glossary: Cash Discounts - purchases If you are paying a material order and get to deduct 2% for paying early, by all means, try to do so. This is where that amount goes: you debit the entire expense to the materials account as if you didn't take the discount, but credit the actual amount of your check to cash, and credit the remainder to the cash discounts account. This helps you see the value of paying early, and if you're in a position to do this fairly regularly, it looks great to your banker - so take the time to book it correctly. Enter your email address below for Venture Capital and Business Planning information. Business Plan Consulting Definition: Cash Discounts - purchases Click here for more Cash Discounts - purchases / Dictionary of Terms If you need assistance in developing a business plan, our staff of industry leading consultants can assist you in preparing a winning presentation. Contact us for a business plan quote to learn more about how we define Cash Discounts - purchases and how we can help you complete your business plan today. Additional terms to learn about Cash Discounts - purchases definitions Dictionary: Cash Discounts - purchases business plan definition - © 2001-2004 HJ Ventures International, Inc.