What is the purpose of a company discounting services


Problem

What is the purpose of a company discounting services? So, for example, if a law firm tells me that they are going to charge me $100 but I get a bill and it reads that the normal charge was $450 but they discounted it to $100. The same for a doctors office. If they send a bill to an insurance company knowing that the insurance company is only going to approve a certain amount, why do they submit for the full amount? Is it so they can show a loss on their taxes? Does the discounted rate somehow count as a writeoff, possibly inflating their revenues or giving them a write-off from other revenue?

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Financial Management: What is the purpose of a company discounting services
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