A manufacturing company sells goods to a merchandising company, which in turn, sells the goods to a retail customer. The Sales Discounts account is debited by the merchandising company when:

Select one:

A. Defective merchandise is returned by the retail customer to the merchandiser

B. Payment is made to the manufacturer within the discount period

C. The retail customer pays the merchandising company within the discount period

D. Defective merchandise is returned by the merchandiser to the manufacturer