Answer:
C. Utilizes a prompt payment incentive
Explanation:
There are only two conditions in which sales returns and allowances will be debited in the journal:
- If the consumers received different goods than their doers.
- If the consumers received a broken/damaged goods.
If the consumers utilized a prompt payment , usually the company will give a small percentage of discount for the consumers. In the journal , Sales discount will be written on Debit side, not sales returns and allowances account
