The cash discount allowed is usually so large that a purchaser can ill afford not to take advantage of it.
In Example No. 1, the cash discount is entered in the discount column, and the net cash received is entered in the cash column.
He could buy 'em at so much a gross with a cash discount, and he did it before ever they signed on.
At any period the option may be exercised of paying off the balance, and so take advantage of the cash discount.
“Taking the cash discount, it comes to a dollar less than what I was ready to pay you,” he said.
In Example No. 2, the cash discount is entered in the proper column, but the gross amount is entered in the cash column.
A better method, and one which has become standard, is to provide a cash discount column in the cash book.