Cash Discount, Sales Discount (Defined, Calculated, Recording Journal Entries, B/S & I/S)

Cash and purchase discounts on the sale and purchase of inventory,what are they and how to record on balance sheet and income statement, the discounts are a deduction from the invoice price to induce early payment on amount due on a sale or purchase of inventory (goods, materials, product, etc.), example (2/10, net 30 means 2% discount if paid in 10 days, or full payment is due in 30 days), affects cash received or paid for the inventory (goods), review discounts from both the buyers and sellers prespective, (1) purchases from the buyers perspective the purchase discount is a contra account to the purchased inventory account on income statement or a direct write off to the inventory account if recorded as an asset account, (2) from sellers perspective sales discount is recorded as a contra revenue account to the sales account on the income statement, recording accounts payable, accounts receivable, sales accounts, discount accounts, etc., detailed calculations and journal entires shown in (T Account) form on the balance sheet and income statement for recording purchase discounts and sales discounts by Allen Mursau