When customers purchase goods on account, Spitz Manufacturing offers them a 2% reduction in the amount owed if they pay with in 10 days. This is an example of a: Multiple Choice Bad debt. Sales discount. Sales return. Sales allowance Gershwin Wallcovering Inc. shipped the wrong shade of palnt to a customer. The customer agreed to keep the paint upon being offered a 15% price reduction. The price reduction is an example of a: Multiple Choice Sales revenue. Sales discount. Sales return. Sales allowance. When a company provides services on account, the transaction would be recorded with a debit to: Multiple Choice Retained Earnings. Service Revenue. Accounts Receivable. Cash