Question

What is the primary purpose of a cash discount? customer compensation for an out of stock item customer compensation for faulty goods or services means of offsetting the interest charges on an account receivable inducement to pay promptly incentive to purchase a specialty item?

Answer 1

What is the primary purpose of a cash discount? Pay promptly incentive to purchase a specialty item.  There are different stores that offer discounts if you pay with cash instead of a card because they don't lose the fee when a card is swiped. They also receive the money instantly so because the customer is essentially helping them, that is their way of helping out as well.