What Are Tax Deductions?

To calculate a trade discount, you need to know the list price of the product or service and the percentage discount offered. The trade discount is applied to the list price, not the discounted price, and factors such as quantity, timing, and conditions of the purchase may influence the discount. Trade discounts are used to incentivize customers to buy in bulk, purchase products during off-peak periods, or take advantage of other favorable conditions. When products are sold with a rebate and the rebate is paid directly to the customer by…