Trade discount is the deduction from list price for allowance to customers for quantities. It may also be used for the purpose of establishing price levels for classes of customers, such as wholesales and retailers.
We had not yet paid for an office printer we bought on credit for £310 because it was not working properly when installed. On 12 July 2013 we returned it to the supplier, RS Ltd. An allowance of £310 was offered by the supplier and accepted. As a result, we no longer owe the supplier anything for the printer.