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,...
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...