Match the term with its definition.

Estimated Return Inventory

Refunds payable

Sales discount

Sales allowance

Answer

A reduction in the amount owed by a customer that does not involve the return of merchandise.

A reduction in the amount of revenue earned on a sale as a result of receiving an early payment from the customer.

A liability account used to estimate the amount to be reimbursed to customers in the future as a result of return of merchandise.

An asset account used to approximate the cost of merchandise inventory a company will get back from a customer after a sale.