Discounts and allowances financial definition of Discounts and allowances
cash discount (redirected from Discounts and allowances)
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An incentive offered to purchasers
of a firm's
product for payment within a specified time period, such as ten days.
cash discount a reduction in the total amount of money owed by a customer to a supplier in return for prompt payment. Cash discounts are offered by suppliers as a means of persuading customers to pay for their CREDIT purchases more quickly and thereby improve the supplier's CASH FLOW.