A reduction in price that is offered to customers who accept slightly damaged or soiled merchandise is referred to as
A) a sales discount.
B) cost of goods sold.
C) a sales allowance.
D) an operating expense.
E) a sales return.

Question

Quizplus · Accepted Answer

A sales allowance is a reduction in price that is offered to customers who accept slightly damaged or soiled merchandise. A sales discount is a reduction in the selling price offered to customers as an incentive for prompt payment. Cost of goods sold refers to the cost of the products that a company sells. An operating expense is a cost that a company incurs in order to operate its business. A sales return is when a customer returns a product for a refund.

A Reduction in Price That Is Offered to Customers Who