Derek's grandfather gives all of his grandchildren $15,000 on their 30th birthdays. Derek just turned 20. What is the value of the
$15,000 gift in today's dollars, assuming that Derek can earn 5.5%
compounded annually?

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