When preparing an income statement for a retailer how will (1) Discount allowed and (2) depreciation of sales-person's motor vehicles be classified?

Question

Quizplus · Accepted Answer

1) Discount allowed is a part of finance and other expenses as it is a reduction in the amount received from the sale of goods due to providing discounts to customers.
2) Depreciation of sales-person's motor vehicles is a part of selling and distribution expenses as it is related to the cost incurred in selling and distributing the product.

When Preparing an Income Statement for a Retailer How Will