1. How are sales discounts computed? How are they recorded? Why are discounts offered?

2. What type of account is Sales, Returns and Allowances and how is it used?

3. What is the accounts receivable subsidiary ledger and how is it used? Why does a company keep a subsidiary ledger? Explain how a journal entry ends up in that subsidiary ledger?

4. What account is used to show that a company has collected sales tax but has not yet paid it to the government? What type of account is it?