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Help with a journal entry please

I am definitely not an accountant but I am trying to assist a small jewelry store with their books. (They use Peachtree.) The store printed two types of coupons: one version says something like "10% off your next purchase" and one version that says "$50 off your next purchase" and I'm not sure what the journal entry would be after someone uses each type of coupon. Wouldn't the journal entry be the same for both coupons? I would just need to know the dollar amount represented by the

10%?

Also, sometimes the coupons are given to new employees as "signing bonus". Would the journal entries be the same as above?

Thanks!

Sara

Reply to
sbernelli
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You would not do this with a journal entry because Accounts Receivable is impacted. Instead you record the discount when the receipt is posted. First under Maintain>>Customer defaults make sure that you have specified an Income account for posting Sales Discounts. This can be the same as your Sales/Income account or it can be a different account. Management choice. Then when the sale is made record the Invoice for the full UNdiscounted amount. Then when the customer pays their amount use the Receipt Task to record the amount paid as well as the Discount amount. There is a column for the discount.

Alternatively you could include the discount on the invoice as a credit but you will need to post it to the appropriate Income account as discussed above. Then all that is left on the customer account is the amount that they owe once the discount coupon is applied.

Reply to
Laura

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