Discount allowed journal entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2013 Received cash from customer for $2940 after allowing 2% cash discount.
What is total amount receivable?
Somebody answer me quick.
Im having trouble with the calculation of total amount receivable and discounted amount.

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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06 March 2013 Total Cash Received - 2940 $

For every 100$ You would receive 98$ after cash discount of 2$.

Total receivable would be - 2940/98*100 i.e 3000$ and cash discount would be 60$