How cash discount differ from trade discount?

Answer:
Trade discounts are guranteed discounts a business is getting by purchasing from a seller. Cash discounts are OPTIONAL discounts that a buyer gets if they opt to pay their bill (invoice) earlier then the due date. The seller specifies in the invoice how many days earlier a buyer has to pay their bill to get the cash discount. If a cash discount is taken, it is applied after the trade discounts, but before shipping and handling charges.
First answer by ID2908323772. Last edit by ID2908323772. Question popularity: 1 [recommend question].

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