When customers purchase products on account,Spitz Manufacturing offers them a 2% reduction in the amount owed if they pay within 10 days.This is an example of a:

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This is a sales discount, as it is a reduction offered to customers as an incentive to pay their account within a specific timeframe. It is not a bad debt (which is when a customer does not pay their owed amount), a sales return (which is when a customer returns a product), or a sales allowance (which is a reduction in the amount owed due to a defect or other issue with the product).

When Customers Purchase Products on Account,Spitz Manufacturing Offers Them a 2