Question

cash discount is not recorded in the books of accounts​
TRUE/FALSE

Answer 1

Answer:

Because trade discount is not an actual discount that granted by the seller or received by the purchaser. Rather it is a discount deducted from a list price (offered price) to arrive the actual selling price. In other words, it is a discount made to the purchaser before the actual transaction was made

So, since no transaction is made during the trade discount there is no need to record in the book of neither party (the seller or the purchaser).

Explanation:

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