An allowance made to a customer for prompt payment is known as

Assessment: JAMB UTME - Commerce - 2024 Subject: Commerce

Question 1 Report

An allowance made to a customer for prompt payment is known as
Answer Details

An allowance given to a customer for making prompt payment is called a cash discount. This is a reduction in the amount due to encourage the customer to pay within a shorter period. Essentially, it serves as an incentive for early payment, improving the cash flow for the seller and rewarding the buyer for settling their debts quickly.

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