Explain the difference between a Trade discount and Cash discount?​

The key difference between trade discount and cash discount is that trade discount refers to the reduction in list price known as discount, allowed by a supplier to the consumer while selling the product generally in bulk quantities to concerned consumer, whereas, cash discount is discount given by the supplier on its cash payments to recover the cash debts on time as it motivates the buyer to pay cash early as they are given discount if they pay within the stipulated time.

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