When a customer of Vegas Sign Company chooses to pay immediately on delivery rather than wait to be billed in 30 days,the buyer receives a 5 percent discount.This 5 percent discount is an example of a:

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The 5 percent discount offered for paying immediately on delivery is a cash discount. It is a deduction from the invoice amount granted to the buyer as an incentive to pay their bill quickly. This type of discount is commonly offered in businesses to encourage cash flow and discourage outstanding debts.

When a Customer of Vegas Sign Company Chooses to Pay