In this example, assume your customer received a 1 percent discount, or $1, ... Report your result as "Net sales" below the sales discounts line on your income statement.

The revenue received by a company is usually listed on the first line of the income statement as revenue, sales, ... They offer a 2% discount if the customer pays with cash.

But, as the products and services are received, prepaid expenses are recognized on the income statement for each period when the money is spent. Key Takeaways Prepaid expenses are incurred for ...