define purchase discounts 598929

Define purchase discounts.

1. Cash discounts that reduce the cost of merchandise for the buyer if the buyer pays the cost within a specified time, which is less than the otherwise stipulated time of repayment
2. Cash discounts that reduce the cost of merchandise for the buyer if payment is made within six months of a purchase
3. Discounts that reduce the cost of merchandise for the buyer if the purchase is made on credit
4. Cash discounts that reduce the cost of merchandise for the buyer if payment is to be made in instalments