Discount taken by the buyer for early payment of invoice.
a. \quad Freight
b. \quad Delivery Expense
c. \quad Merchandise Inventory
d. \quad Sales discount
e. \quad Purchases Returns and Allowances
f. \quad Debit memo
g. \quad Purchase discount
h. \quad Trade discount

Purchase Discount

A reduction in the price of goods that a buyer can avail of for making early payments to the seller.

Sales Discount

A reduction in the price of goods or services offered to a customer, typically used to incentivize prompt payment.

Discount

The interest deducted from the maturity value of a note or the excess of the face amount of bonds over their issue price.