A sales discount is typically recorded as a credit in accounting.
When a business offers a sales discount, it reduces the amount of revenue that it will receive from a sale. For accounting purposes, this reduction is reflected by crediting the sales discount account. This account is often categorized under contra revenue accounts, which means it offsets the total revenue. In essence, while the original sale is recorded as a debit (increasing revenue), the discount applied is a credit that reduces this revenue. Therefore, the overall effect on the financial statements is a decrease in net sales.