If the goods sold to a customer are damaged in shipment, the buyer normally asks for a(n)
A) sales discount.
B) accounts receivable.
C) sales allowance.
D) purchase discount.

Question

Quizplus · Accepted Answer

If the goods sold to a customer are damaged in shipment, the buyer normally asks for a sales allowance, which is a reduction in the amount owed due to the damaged goods. This is not the same as a sales discount or a purchase discount, which are typically offered by the seller as an incentive for prompt payment or for buying in large quantities. An accounts receivable is the amount owed by a customer to a seller for goods or services already provided and is not relevant in this situation.

If the Goods Sold to a Customer Are Damaged in Shipment