Purchase Discount

[MD. ABDUR ROUF]

Purchase Discount: Purchase discount is a policy by which the seller tries to make the collection from the buyer sooner. The seller offers a credit term that tells the amount of discount and discount period. A very common term is 2/10, n/30 or 2/10EOM, n/60. This means 2% discount is available if the amount is paid within the first 10 days and net amount must be paid within 30 days or This means 2% discount is available if the amount is paid within the first 10 days of the next month and net amount must be paid within 60 days.