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Giving cash discounts helps introduce your product/service to a first time buyer who otherwise might not have tried what you had to offer due to pricing. Sometimes a discount pricing can trigger a buy regardless of the discount and impulse buying is another good reason for offering discounts.
What else can I help you with?
Why you debit discount allowed?
because you credit bank/cash and therefore you debit discounts allowed, cause you're giving the money, bro.
What are the different kinds of discount?
trade discounts, cash discounts, discount series and seasonal discounts
How cash discount differ from trade discount?
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.
Is Cash Discount received on cash sales?
Cash discounts are received on cash sales. The seller or provider often refers to the cash discount as a sales discount.
What kind of businesses give cash discounts?
Businesses that like to hide part of their revenue from the Tax Man (IRS). If you pay by debit/credit card or cheque every thing is tracable. Taking payments in cash also helps keep banking costs down. Hence it is mostly small businesses that give cash discounts to encourage you to pay them in cash enabling them to control costs and avoid small amounts of tax. Additionally, gas stations are notorious for offering cash discounts.
ARE Cash discounts AN asset or liability?
Cash discounts are a liability.
Can you give reasons of cash discounts?
The use of cash discounts can help with cash-flow and reduce the cost of transactions in terms of banking fees. This is perfectly acceptable unless designed to attract payments in cash which will not be reflected in the accounts of the business as this would amount to tax evasion depending on your location in the world.
Why you debit discount allowed?
because you credit bank/cash and therefore you debit discounts allowed, cause you're giving the money, bro.
What are the different kinds of discount?
trade discounts, cash discounts, discount series and seasonal discounts
What are the primary reasons that companies hold cash?
A company holding too much cash would be giving up the opportunity to invest more in income producing assets.
How cash discount differ from trade discount?
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.
How can cash discounts improve cash collections?
Discout allowed incourage the debtors to avail discounts and save money and they tries to pay as quick as possible
Is Cash Discount received on cash sales?
Cash discounts are received on cash sales. The seller or provider often refers to the cash discount as a sales discount.
Do car dealers offer discounts for paying cash?
Yes, some car dealers may offer discounts for paying cash, as it can save them money on financing fees. However, not all dealers will offer this option, so it's important to ask about cash discounts before making a purchase.
Can you Give some examples of cash discount and trade discount?
can you give some example if cash discounts?
What is the Journal entry for CASH sales with discounts?
cash a/c.......dr amt(after discount) to sales a/c amt(after discount)
What kind of businesses give cash discounts?
Businesses that like to hide part of their revenue from the Tax Man (IRS). If you pay by debit/credit card or cheque every thing is tracable. Taking payments in cash also helps keep banking costs down. Hence it is mostly small businesses that give cash discounts to encourage you to pay them in cash enabling them to control costs and avoid small amounts of tax. Additionally, gas stations are notorious for offering cash discounts.
