The amount a customer can deduct if the bill is paid within a specific period of time is called a

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A cash discount is a reduction in the amount owed by a customer if the bill is paid within a specified period of time. This is different from a trade discount, which is a reduction in the listed price of goods or services provided by the vendor, and a credit period, which is the amount of time a customer has to pay their bill without incurring any additional charges. While a credit discount is not a common term in business, it may sometimes refer to a reduction in the balance owed by a customer due to a credit balance on their account.

The Amount a Customer Can Deduct If the Bill Is