 refers to arrangements made with customers as to when the goods/services are to be paid for and whether a cash discount is offered.

COD—cash on deliver On Account—full amount of invoice is due when invoice is received Net 30—full amount of invoice is due 30 days after the invoice date 2/10, n/30—2% discount may be taken if invoice is paid within 10 days, or full amount is due 30 days after the invoice date

 Nanaimo Marina Purchase: Purchases HST Recoverable A/P- Masthead Marine

Payment made with Discount: A/P- Masthead Marine Discounts Earned9.31 Bank COGS CR

 Masthead Marine Sales: A/R- Nanaimo Marina Sales HST Payable 53.55

Payment Received with Discount: Bank Discount Allowed 9.31 A/R- N. Marina Sales Discount DR

 Ex. 1, 3, pp (t), pp (w)  Ex. 11 p. 462 (t), p. 377 (w)