Does discount revenue and discount expense include GST?

[livva]

Having a mental blank here...

Say you had a customer buy stock worth $1000 + $100 GST, and they got a 5% discount... their discount would be $55, right?

And would you need to do any adjustments to GST clearing since the stock ended up selling for less than the original price? Or would it still be $100?

[abcdqdxD]

Is this a credit sale, and the terms are 5% discount for early repayment?

[Michelle94]

the discount is 55 yes,
but its just 55 of the sales. gst remains 100

[livva]

Liverpool: yes, credit sale with 5% discount for early payments.

Michelle: Thank you! That sounds right. 

[Michelle94]

for a sales return in the stock card, its the most recent sale cost price yeah?

[link125]

for a sales return in the stock card, its the most recent sale cost price yeah?

yes

because you want to make it look like the previous sale transaction didn't take place

[abcdqdxD]

Discount is always calculated on total amount owing