Question

41. What is cash discount? 42. Distinguish between trade discount and cash discount.​

Answer 1

Answer:

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.

Trade Discount is provided to increase sales in bulk quantity, while Cash Discount is given to the customers to encourage early and prompt payment. Trade discount is allowed on both cash and credit transactions. In contrast, a cash discount is allowed to the customers only on cash payments.

Answer 2

Answer:

CASH DISCOUNT :

Cash discount refer to an incentive that a seller offer to a buyer in return for playing a bill before the secheduled due date

Explanation:

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