We are a wholesale distributor for pipe, valves and fittings. Some of our vendors offer a 2% 10 Net 30 for early payment. An example is tube fittings purchased from a vendor that offers 2% 10 Net 30 days. The invoice will be for $10,000 for a 15 line purchase order with varying quantities on each line.
I have started taking advantage of the discount but noticed that the discount taken at time of payment is falling into an account that is incorrect. I was going to change it but then I started questioning if the discount should be recorded under COGS or other income. Any insight would be appreciated.
Thanks in advance!
