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ERIC Number: EJ899411
Record Type: Journal
Publication Date: 2007-Jan
Pages: 6
Abstractor: ERIC
Reference Count: 12
ISSN: ISSN-1544-0389
Accounting for Exchange Transactions: An Alternative Perspective
Holland, Rodger G.; Kaminski, Kathleen A.
Journal of College Teaching & Learning, v4 n1 p113-118 Jan 2007
In general, the two basic methods for recording exchange transactions are to record them at gross, and then account for the discounts that are taken, or record them at net, and adjust for discounts that are not taken (are lost). Most principles texts cover only the gross method, and some do not even deal with the discount issue at all. Others may mention the discounts but rarely illustrate both methods. At the intermediate level, several texts discuss both methods, but usually note that the gross method is most widely used in practice, for a variety of reasons. Yet both methods are weak in terms of information provided. This paper presents a simple alternative method of recording exchange transactions that is theoretically superior to the popular gross method and is more informative than either the net or gross method. (Contains 2 tables.)
Clute Institute. P.O. Box 620760, Littleton, CO 80162. Tel: 303-904-4750; Fax: 303-978-0413; e-mail:; Web site:
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Higher Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A