Often a 1% or 2% discount that a buyer may deduct from the amount owed to a supplier (if
stated on the supplier’s invoice) for paying in 10 days instead of the customary 30 days. The
purchase discount is also referred to as an early-payment discount.
Also a general ledger account in which the purchase discounts are recorded under the periodic
inventory method.
Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials
Read all 2,651 reviewsFeatures
PRO
PRO Plus
For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.
Read 2,651 Testimonials
