Burlington offered its customers a reduction in price on some clothing items that were slightly faded from being in the window at the front of the store.This reduction is called a
A) cost of goods sold.
B) sales allowance.
C) sales return.
D) sales discount.
E) sales bargain.

Question

Quizplus · Accepted Answer

A sales allowance is a reduction in the selling price of a product that has minor defects or imperfections, such as slightly faded clothing. This type of reduction is also referred to as a markdown or discount. Option A, cost of goods sold, refers to the cost incurred by the retailer to purchase the items. Sales return and sales discount refer to other types of reductions in price. Sales bargain is not a commonly used term in accounting or retail terminology.

Burlington Offered Its Customers a Reduction in Price on Some