A sales returns and allowances account is not debited if a customer .
A. Returns defective merchandise.
B. Recieves a credit for merchandise of inferior quality.
C. Utilizes a prompt payment incentive.
D. Returns goods that are not in accordance with specifications.

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

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-lavira : )

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