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Finance 17 Online
marysa123:

can chain discounts sometimes be added together

mhchen:

You mean if 5% discount + 10% discount is 15% discount? Yeah I think it can. Example: 1*0.05 + 1*0.1 = 0.15 and 1*0.15 = 0.15 so they're the same

Mercury:

"Because the discounts occur one after the other (in series), each one has to be calculated in its correct order and not simply added together." https://www.double-entry-bookkeeping.com/accounts-receivable/chain-discounts/

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