The net method assumes that every customer will pay in time to receive a sales discount. At the time of a sale, record the discounted invoice amount in your accounting journal.

Businesses use accounting methods to record, track and analyze financial transactions. Within an accounting cycle, such as a month or calendar year, businesses can look at gross and net totals for ...

Companies that use these two methods of inventory accounting must now use the lower of cost or net realizable value method, which is more consistent with International Financial Reporting ...