Discuss the types of discounts

1. Trade Discount

The amount which is deducted from the price list of the goods sold is called a trade discount. The seller fixes up invoice price or sale price deducting trade discount from the listed price. The trade discount is not accounted for.

2. Quantity Discount

The discount allowed by the seller to the buyer on the amount crossing minimum target sales is called quantity discount

I.E. after granting a normal trade discount if the sale amount crosses the minimum target sale, the seller grants an excess discount to the buyer.

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