A reduction given to customers for early payment is a:

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A reduction given to customers for early payment is known as a sales discount. Option A (sales returns and allowance) refers to a reduction in price given to customers for damaged or defective products or goods returned for other reasons. Option B (purchase discount) refers to a discount given by the supplier to the buyer for prompt payment. Option D (purchase return) refers to the act of returning goods to the supplier for various reasons such as defect or delivery of wrong products.

A Reduction Given to Customers for Early Payment Is A