NET PURCHASE RECORDING

Recording method for cash discounts or purchases accounting. Its journal entry basis is invoice amount minus expected cash discount. The discount is charged to discounts lost account if the discount is not realized. Also known as net price recording.

More On This Topic



Link to This Definition
Did you find this definition of NET PURCHASE RECORDING helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary