If a Customer Agrees to Retain Merchandise That Is Defective

question 19

Multiple Choice

If a customer agrees to retain merchandise that is defective because the seller is willing to reduce the selling price this transaction is known as a sales

• A) discount.
• B) return.
• C) contra asset.
• D) allowance.

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Definitions:

English Auction

A type of auction where bidders openly bid against one another with each subsequent bid being higher than the previous bid, and the highest bidder wins.

Reserve Price

The minimum price at which a seller is willing to sell an item in an auction, below which the item will not be sold.

Expected Profits

The predicted average profit of a business activity, accounting for the various possible outcomes and their probabilities.

English Auction

A public sale in which goods or properties are sold to the highest bidder, where the price ascends with successive bids until no higher bids are made.