Final answer:
A sales allowance is a discount given to a customer when the delivered goods do not fully meet their expectations, often used in online or mail-order sales to ensure customer satisfaction.
Step-by-step explanation:
A sales allowance is a partial adjustment to the amount owed by a customer for goods that were received, but did not fully meet the customer's expectations. Rather than returning the item, the seller may offer a reduction in the selling price. This is common practice in scenarios where goods are purchased online or via mail-order catalogs, where the customer cannot physically inspect the items before purchasing.
Offering a sales allowance or a money-back guarantee acts as a promise of quality and reassurance to the customer, encouraging them to complete the purchase even if they are not certain about the item. Furthermore, guarantees, warranties, and service contracts are explicit forms of reassurance provided by sellers to instill confidence in their products and address any dissatisfaction that may arise post-purchase.