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Name two situations where cash would be remitted to a retailer from a manufacturer after purchase.

a) Returns and allowances, damaged goods
b) Early payment, damaged goods
c) Discounts, returns and allowances
d) Early payment, discounts

User Medo Medo
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1 Answer

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Final answer:

Cash is remitted to retailers for returns and allowances, damaged goods, and discounts for early payment. Manufacturer warranties and service contracts also assure the retailer of quality and can lead to financial adjustments in case of product issues.

Step-by-step explanation:

The situations where cash would be remitted to a retailer from a manufacturer after purchase are returns and allowances and damaged goods. This means when goods are returned due to being unsatisfactory, or when they arrive damaged, the retailer can be refunded or credited by the manufacturer. Additionally, cash can be remitted in the form of discounts for early payment as an incentive for the retailer to pay their invoice ahead of the due date.

Guarantees, warranties, and service contracts are forms of explicit reassurances that the manufacturer provides to the retailer or the end consumer. In cases where there is an implicit understanding of quality, businesses may still issue refunds or allow exchanges to maintain customer satisfaction and loyalty.

User Sklavit
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