ACCA F3 Discount Allowed
Charles entered into the following transactions:
1. He sold goods on credit to Cody with a list price of $30,000. He allows a 10% trade discount and a further 5% discount for payment within seven days. Cody paid within two days.
2. He made a credit sale to Mary allowing a 10% trade discount on the list price of $2,000.
3. He purchased goods for $1,200 and paid $1,180, receiving a discount for immediate cash payment.
How much discount should be recorded in the Discount Allowed account as a result of the above transactions?
| List Price | 30,000 |
| Trade Discount | 3,000 |
| Actual sales | 27,000 |
| Early payment discount | 1,350 |
| Discount Allowed | 1,350 |