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...
Trade Discount are considered cost of sales/reduction in sales dependant upon who the customer is.
Cash Discount is always considered Increasing Interest Expense/Reduction of Interest Expense,...
customer class, the season, the condition of the economy, whether a product is being discontinued, and the manufacturer's efforts to encourage volume purchases.