Asked by Abigail Rodriguez on Jul 28, 2024
Verified
When the seller offers a sales discount, even if borrowing has to be done, it is generally advantageous for the buyer to pay within the discount period.
Sales Discount
A sales discount is a reduction in the price of goods or services offered by a seller to a buyer, typically to encourage early payment or bulk purchases.
- Understand the effects of purchase discounts, sales discounts, and credit card sales on financial statements.
Verified Answer
JW
Jaces world HollywoodJul 29, 2024
Final Answer :
True
Explanation :
It is generally advantageous for the buyer to pay within the discount period because they will be able to make the purchase at a lower cost. Even if borrowing is required to take advantage of the discount, the savings from the discount will likely offset the cost of borrowing.
Learning Objectives
- Understand the effects of purchase discounts, sales discounts, and credit card sales on financial statements.