In entering in the books an invoice that involves a trade discount, the amount to be used is the net amount after the trade discount is subtracted.

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A trade discount is a reduction of the listed price of a product or service. The amount to be used for accounting purposes is the net amount after the trade discount is subtracted. This is because the trade discount is given at the time of purchase, and it is reflected in the final amount paid by the buyer. Therefore, the net amount is what needs to be recorded in the books of accounts.

In Entering in the Books an Invoice That Involves a Trade