Discount allowed is a kind of deduction from:?

Hello Team,

Discounts may be offered on sales of goods to attract buyers. Discounts may be classified into two types:

Trade Discounts: offered at the time of purchase for example when goods are purchased in bulk or to retain loyal customers.

Cash Discount: offered to customers as an incentive for timely payment of their liabilities in respect of credit purchases

Regards,

Saiyid

Discount allowed is form of Account Receivables

Note : Discount received is form of Account Payables