Accounting Dictionary

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Sales Discount

Definition: Sales discount is a reduction in the price of a product or service that is offered by the seller, in exchange for early payment by the buyer. An example is 2/10 net 30 terms, where a customer can take a two percent discount if it pays an invoice within ten days of the invoice date, or pays full price 30 days after the invoice date.

For problems with early payment discounts, click here.