A deduction from the sales price of goods that is allowed if payment is made within a specified period of time
Question 1 Report
A deduction from the sales price of goods that is allowed if payment is made within a specified period of time
Answer Details
The deduction from the sales price of goods that is allowed if payment is made within a specified period of time is known as a "cash discount". It is also known as a "prompt payment discount" or "early settlement discount". This discount is given as an incentive for the customer to pay their bill promptly and reduce the amount of time that the seller has to wait for their money. The cash discount is usually expressed as a percentage of the sales price and is often referred to as a "2/10 net 30" discount, which means that the customer can take a 2% discount if they pay within 10 days, or pay the full amount within 30 days.
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