A discount given to encourage prompt payment is called:Multiple ChoiceОa cash discount.all of these answer choices are correct.a sales discount by the seller.a purchase discount by the buyer.

Cash discounts are like a reward for paying your bill quickly. Here's a breakdown:What it is:A price…

Answered: A discount given to encourage prompt…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 5TF

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Similar questions

types of discounts is given to the buyer if the buyer makes a bulk purchase ?
Which one of the following types of discounts is given to the buyer if the buyer makes a bulk purchase;
When offered with single trade discounts or discounts series, would you avail of themright away? why?
Kate Trading made an early payment to its suppliers to take advantage of the discount offered by the supplier. What account is most likely used for the discount that is being acquired by Kate Trading? cash discount trade discount sales discount purchase discount
Sellers use two methods in practice that simplify the process of recording sales discount. What are these methods of sales discount?
Conduct research on a real-world retailers trade discounts and policies, and discuss the following questions. Which company did you choose? What do they sell? What is a trade discount? What products are subject to a trade discount? Describe the discount terms/program in detail. Give examples. Are there any restrictions? What incentive does this company have to give a trade discount? How does this discount benefit the buyer? If the buyer had to choose between receiving a trade discount or regular cash purchase discount, which would benefit them more? Why?
If you are the seller will you provide discount for customers? Why or why not? What type of discount will you provide for your customers? How will you account for this discount? Answer this by giving a sample problem including the debit and credit entries. If you are the buyer, will you get discounts for your suppliers? Why or why not?
If any discount is offered for early payment of invoice will be called as a. Cash discount b. Trade discount c. No discount d. Any discount
Which of the following would not result in a reduction of the amount invoiced to a customer when a credit sale is made? A. Quantity discount B. Cash-free discount C. Sales discountD. Two-for-one special
What is another name for the bill that the seller sends to the buyer when the buyer purchases merchandise on account? Group of answer choices purchase requisition receiving report invoice purchase order
A retailer pays for purchased merchandise within the discount window. The retailer would recognize this transaction by debiting ["", "", "", ""] and crediting both ["", "", "", ""] and ["", "", "", ""]
What are some benefits to a retailer for offering a discount to a customer?

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A discount given to encourage prompt payment is called: Multiple Choice О a cash discount. all of these answer choices are correct. a sales discount by the seller. a purchase discount by the buyer.