Question

1. What is meant by cash discount?
2. Explain the differences between cash discount and cash discount

3. T.Taku bought goods from a wholesaler for $20 000, less 20% trade discount. Calculate the trade discount

4. XYZ Ltd bought goods invoiced at $5000 les 20% trade discount and 5% cash discount Calculate the amount paid for the goods by XYZ Ltd

Answer 1

Answer:

1) Cash discounts refer to an incentive that a seller offers to a buyer in return for paying a bill before the scheduled due date. In a cash discount, the seller will usually reduce the amount that the buyer owes by either a small percentage or a set dollar amount.

Explanation:

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