If a customer agrees to retain merchandise that is defective because the seller is willing to reduce the selling price this transaction is known as a sales

A) discount.
B) return.
C) contra asset.
D) allowance.

Defective Merchandise

Goods that fail to meet quality standards and are therefore returned, repaired, or sold at a discounted price.

Selling Price

Selling price is the amount of money for which a seller is willing to sell his or her product or service.

Sales Allowance

A reduction in the sale price granted by the seller to the buyer, often due to minor defects or because the buyer has returned part of the order.