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What is a trade discount?

In: Business Accounting and Bookkeeping [Edit categories]

Answer:

Trade discount is the discount that is deducted from the source and then the actual amount is shown. The trade discounts are not shown in the books of accounts. Only the cash discount is shown in the books of accounts but the trade discount will be deducted from the actual and the net amount will be considered.

First answer by ID0996225145. Last edit by Chrissy1961. Contributor trust: 0 [recommend contributor ]. Question popularity: 2 [recommend question].

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