Identify the statements below which summarize what cash discounts are. (Check all that apply.) Cash discounts are described in credit terms. A seller views a cash discount as a purchase discount. A reduced payment applies to the credit period. A seller views a cash discount as a sales discount. A buyer views a cash discount as a purchase discount. A reduced payment applies to the discount period. Sellers can grant a cash discount to encourage buyers to pay earlier.

The correct answer is shown below:

Explanation:

Cash discount is the discount, which is a deduction allowed or provided through sellers of the goods and services so that could motivate the customers or consumers to pay within the particular time period.

So, the statements which summarize are:

1. The sellers offer cash discount, will acknowledge as the sales discount.

2. The buyer refer or acknowledge the cash account as purchase account.

3. The cash accounts are defined as the credit terms.

4. The sellers could grant cash discount in order to encourage the buyers to pay earlier.

5. The payment which is reduced applies to the credit period.