Sales Discount: Sales discount is a way by which the seller can get the cash payments easily and before time. This is the discount given on the selling price to the customer buying the product which makes them satisfied and for seller it helps in getting the payments fast. The term 3 / 10 , n / 45 means that if a customer is paying in 10 days then the payment will be after a discount of 3 % on the total value but if the customer is paying in 45 days then the payment will be made in full which means no discount. The sales discount in the name of quantity discount is the discount given on the buying of bulk quantity of any goods. The assistance of accounting information for each business in achieving its discount policy objectives.

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Chapter 5, Problem 92.2C

To determine

Sales Discount:

Sales discount is a way by which the seller can get the cash payments easily and before time. This is the discount given on the selling price to the customer buying the product which makes them satisfied and for seller it helps in getting the payments fast.

The term 3/10,n/45 means that if a customer is paying in 10 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 45 days then the payment will be made in full which means no discount.

The sales discount in the name of quantity discount is the discount given on the buying of bulk quantity of any goods.

The assistance of accounting information for each business in achieving its discount policy objectives.

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