- Joined
- Jul 21, 2014
- Messages
- 7
- Reaction score
- 1
Scenario:
Motor vehicle cost $100,000 was purchased by the company. Received $10,000 discount on by the motor dealer. Therefore total amount paid is $90,000.
So what is the accounting entry?
1)
DR Motor vehicle $100,000
2)
DR Motor vehicle $90,000
Motor vehicle cost $100,000 was purchased by the company. Received $10,000 discount on by the motor dealer. Therefore total amount paid is $90,000.
So what is the accounting entry?
1)
DR Motor vehicle $100,000
CR Discount received $10,000
CR Bank $10,000
2)
DR Motor vehicle $90,000
CR Bank $90,000
