Accountants do learn to see things a little differently. The textbook, and many source, see net sales as sales less discounts, Accountant, for the most part, think discounts and allowances are not real items. Sales are simply what consumers pay.

That is why, except for health care, we only show net sales. Kohl's may show the price as $20 but with the discount of $8, the customer only pays $12.

Accountants view the as a sale for $12. In health care, providers want consumers to think the real price is $20 even though no one pays this amount, so they show sales as $20 and discounts (contractual allowance) as $8. This is also true with credit sales. 


Accountants see 100% of sale as credit sales, with some paid in 0 days. this is because it costs less to track. Why is cost the driver of how we record items?

Answer rating: 100% (QA)

Cost is often the driver of how we record items because accounting is primarily concerned with accur... View the full answer