A price reduction to customers who pay their bills promptly is called
A) a sales allowance.
B) cost of goods sold.
C) an operating expense.
D) a sales discount.
E) a sales return.

Question

Quizplus · Accepted Answer

A price reduction to customers who pay their bills promptly is called a sales discount. This is a common practice used to incentivize customers to pay their bills on time, it may also help to improve cash flow for the seller.

A Price Reduction to Customers Who Pay Their Bills Promptly