The following information was extracted from Ade Merchants' books: Gross sales per sales day book ₦480,000; Trade discount allowed ₦48,000; Cash discount allowed ₦12,000. What amount would be posted to the credit of the Sales account in the ledger?

Trade discount is deducted before entries are made in the sales day book, so the amount recorded (and posted to the Sales account) is ₦480,000 − ₦48,000 = ₦432,000. Cash discount is recorded separately in the discount allowed account only when payment is received and is never deducted from the sales figure in the sales day book.