ACCOUNTING TREATMENT FOR COMMERCIAL DISCOUNTS ON GOODS PURCHASED FOR RESALE

Abstract

In the specialized literature there are two major categories of discounts applied between business partners: trade discounts and financial discounts. In terms of accounting, the method of calculation of interest is commercial and financial cuts, especially the tax treatment of them. Trade discounts are applied prior to financial services, and both types of discounts are calculated on the net earlier. Discounts are calculated after applying discounts and special an issue is to know the level of rebates, which are determined periodically based on the turnover.

Keywords

• commercial discounts
• goods
• accounting treatment