What is trading discount
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A trade discount is the amount by which a manufacturer reduces the retail price of a product when it sells to a reseller, rather than to the end customer.
Explanation:
The trade discount may be stated as a specific dollar reduction from the retail price, or it may be a percentage discount
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the discount which is given at the time of bulk purchase or sale by the seller or buyer is known as trading discount. trading discount is calculated but not recorded in the books of Accounts.
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