A customer notifies the vendor that purchased merchandise is damaged and cannot be sold at the normal price. Any credit granted to the customer would be called a
A) sales return.
B) purchases allowance.
C) sales allowance.
D) none of these.

Question

Quizplus · Accepted Answer

A sales allowance occurs when a customer agrees to keep purchased goods that are damaged or unsatisfactory in exchange for a reduction in price. This is different from a sales return, where the goods would be returned to the seller.

A Customer Notifies the Vendor That Purchased Merchandise Is Damaged