In Accounting, how do you journalize a discount on supplies from the PURCHASER's point of view?

Question

(supplies paid on account)

For the seller there's the Discounts Allowed account- is there any such thing for the purchaser?

Answer 1

When you made the original purchase, your entry would have been:
Dr Supplies 100
Cr Accounts payable 100

Let's say you get a 2% discount if you pay within 10 days, and you do. So you only need to pay $98. On payment, your entry:
Dr Accounts payable 100
Cr Discount received 2
Cr Cash 98

The discount received would be offset against the supplies so that your net supplies would be 98.

Answer 2

Normally you would not have to journalize this discount. However, if you are paying on a commission basis and want to record cost as the pre-discount price, then you need to create and income account for this discount.
Debit inventory or cost of goods sold for the full amount
credit an income account (ie: vendor discounts) for the discount amount
credit cash or accounts payable for the net amount due
If cost = 3000 discount price = 2750
debit cogs 3000
credit vendor discounts 250
credit cash 2750

Answer 3

Your question is confusing. I am assuming you are asking how does a supplier account for customer deductions. When the Supplier recieves payment on credit, they apply the cash to an open invoice, crediting AR, credit deductions, debit cash. Good luck.