If a customer receives goods that are damaged but does not want to return the goods to the seller, the seller can offer a reduction in the selling price which is known as an allowance.

Question

Quizplus · Accepted Answer

This is correct. An allowance is a reduction in the selling price offered by the seller to compensate the customer for receiving damaged goods that they do not want to return.

If a Customer Receives Goods That Are Damaged but Does