Asked by Viktoriia Gervasi on May 13, 2024
Verified
Purchase allowances refer to a price reduction (allowance)granted to a buyer of defective or unacceptable merchandise.
Purchase Allowances
Reductions in the price paid by a buyer to a seller, due to minor defects or quality issues with the goods provided.
Price Reduction
A decrease in the selling price of products or services, often to drive sales or clear inventory.
- Become familiar with the essential aspects of sales terms and conditions, like FOB shipping point and destination, purchase discounts, allowances, and returns, in controlling revenues and expenses.
Verified Answer
JP
JAHANVI PANCHALMay 16, 2024
Final Answer :
True
Explanation :
Purchase allowances are indeed a price reduction granted to a buyer of defective or unacceptable merchandise.
Learning Objectives
- Become familiar with the essential aspects of sales terms and conditions, like FOB shipping point and destination, purchase discounts, allowances, and returns, in controlling revenues and expenses.
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