Allowance is given on catalogue price of goods.
Answers
Answer:
Discount and allowances are reduction to a basic price of goods or services ...... cash discount are reduction in price given to the debtor to motivate the debtor to make payment...
Answer:
Trade discount is the allowance is given on catalogue price of goods.
Explanation:
Step 1: Discounts are the term for incentives used to encourage sales, whereas allowances are the term for incentives used to encourage payments (which apply only to purchases made on credit). Retail and wholesale businesses employ discounts most frequently (for instance, when a store has a 10% off sale).
Step 2: A functional discount is a discount off the list price given by a seller to a buyer in exchange for the customer doing marketing tasks.
Step 3: Customers typically receive discounts for paying with cash in hand, making payments more quickly, buying in big quantities, buying during off-peak times, etc. These discounts include volume discounts, seasonal discounts, trade discounts, and cash discounts.
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