Denomination of Main Accounts

To facilitate the study of the Profit and Loss Statement or Income Statement and the development of the other chapters, it is necessary to know each of the accounts that are part of said state, since without such knowledge there will be greater difficulty in the formation of it and in learning the other topics of this book.
Accounting terminology With which the accounts that make up the Profit and Loss Statement or Income Statement are called:
Total sales. We understand by Total Sales the total value of the merchandise delivered to the clients, sold in cash or on credit.
Returns on sales. We understand Returns on Sales as the value of the merchandise that customers return because they are not satisfied with the quality, price, style, color, etc.
Discounts on sales. We understand by Sales Discounts the value of the bonuses that on the sale price of the goods is granted to customers, when such goods have a defect or are of lower quality than the agreed. It can be said that discounts or bonuses are granted in order to attract new customers or to retain existing ones.

Discounts on sales. We understand Sales Discounts as bonuses that are granted to customers for paying these, the merchandise owed, before the stipulated term.
It should not be forgotten that sales rebates are the rebates that are granted on the sale price of the merchandise to the customers, while discounts on sales are granted for prompt payment, Discounts on sales are subaccount of Expenses and products financial
Purchases. They are the value of the goods purchased, either in cash or on credit.
Purchase expenses. We understand by Purchase Expenses all the expenses that are made so that the purchased merchandise reaches its destination, the main ones are: customs duties, freight and transport, insurance, loading and unloading, etc.
Returns on purchases. We understand by Returns on purchases the value of the merchandise returned to the suppliers, because we are not satisfied with the quality, price, style, color, etc.
Discounts on purchases. We understand by Discounts on purchases the value of the bonuses that on the purchase price of the Goods are granted to us by suppliers when they have a defect or their quality is not the agreed one.
Discounts on purchases. Discounts on purchases are understood to be the bonuses that suppliers grant us for settling the amount of the merchandise before the stipulated date.
As can be seen, discounts on purchases are the bonuses that on the purchase price of the goods are granted to us by suppliers, while discounts on purchases are granted to us soon pay.