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Q: Why is trade discount better than cash discount?
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Differentiate between cash discount and trade discount?

Cash discount is a discount offered by a seller to a buyer for paying earlier than the due date, whereas a trade discount is a discount provided by a seller to a buyer based on the quantity or value of goods purchased. Cash discount reduces the actual amount to be paid, while trade discount is deducted from the list price before calculating the invoice amount.


What is cash discount?

A discount given to the buyer if he/she pays in cash rather than credit


What is the difference between cash discount and trade discount?

Difference between trade discount and cash discount are as follow:1)on the basis of objective:td: this discount is allowed to increase sales.Cd: this discount is allowed to motivate the customer to pay early.2)basis:td: it is allowed on the list price of the goods.Cd: it is allowed on the amount to be paid.3)entry in the books:td:it may be stated as information,but it is not recorded in the books of account.Cd: it is recorded in the books of accounts.4)entry in invoice:td: it is stated in the invoice.Cd: it is not shown in the invoice.5)receiver:td: it is allowed to all customer, wethers cash or credit.Cd: it is not allowed to all customer.6) rate:td: rae of trade discount is generally higher than the cash discount.Cd: rate of cash discount is generally lower.


Meaning of discount allowed?

whenever businessman permits less payment than actual one to the buyer whatever benefit buyer is getting is called discount at the time of purchase or at the time of payment. discounts are of two type trade discount and cash discount. when buyer purchases the product in huge quantity seller gives trade discount and on credit sale seller instruct buyer if buyer will pay the amount within time limt permited by seller he will give cash discount.


What circumstances would it be advisable to borrow money to take a cash discount?

It is advisable to borrow in order to take a cash discount when the cost of borrowing is less than the cost of foregoing the discount. If it cost us 36 percent to miss a discount, we would be much better off finding an alternate source of funds for 8 to 10 percent.


Can you swap your dsi for a 3ds?

You can trade it to gamestop for a discount off it, but it's not worth it, because the discount is smaller than the value of the dsi you trade in.


What is the difference between a trade in and a cash trade in?

Some stores offer trade-ins for store credit rather than cash. Store credit can only be used in that store, and will most likely be of a higher value of any cash trade-in value they might offer. The store simply wants you to spend more in their store rather than take their cash and walk away.


What is Scot Trade and why is it better than it's running contender?

Scottrade is a company that offers discount stock brokering. Scottrade is considered more affordable than its contenders and is known for having good customer service.


Why might cash discount be offered to customer?

This is most common in medical cases. Probably because cash is a guarantee of pay, rather than a check, or making payments where can both default. By offering a discount for cash, the institute can save its self a possible headache when then having to send the customer to a collection agency and pay fees.


Is a discount camcorder a better offer than an expensive one ?

Better offer? Yes it is. But at what cost. Expensive is pretty vague as well as discount. Just remember that it is buyer beware and ultimately you get what you pay for.


Would people get better deals at car dealerships if they paid cash for their car purchases instead of using credit?

You can negoitate a better rate if you use cash than credit. Dealers like cash.


If you trade in a white Wii can you get a black Wii?

Yes you can - but it will not be a straight trade. You will more than likely have to put in more cash of your own for the swap.