Question

when goods are sold to a customer by entity and customer promise to pay amount at certain future time period that is know as

Answer 1

The term for when goods are sold and the customer promises to pay at a future time is known as a credit sale or sale on account. Money-back guarantees, warranties, and service contracts are strategies to assure customers of the quality and reliability of their purchases.

Step-by-step explanation:

When goods are sold to a customer by an entity and the customer promises to pay the amount at a certain future time period, this is known as credit sale or sale on account. Sellers often use various strategies to encourage customers to make purchases. One such strategy is the offering of a money-back guarantee, which serves as a promise of quality. This is especially important when the goods are sold through mail-order catalogs or over the web, where the customer cannot inspect the product in person. The guarantee encourages customers to buy with confidence, knowing they can return the item if it does not meet their expectations.

Sellers may also offer additional forms of customer assurance, such as a warranty or a service contract. A warranty is a promise to fix or replace the goods within a specific time period if there are any issues, while a service contract involves an extra payment for extended maintenance and repair services. These offers can apply to various items, including cars, appliances, and even houses, providing a form of collateral against unforeseen, detrimental events.

Answer 2

Promissory agreement.

Step-by-step explanation:

A promissory agreement can be defined as an evidence of a debt and as such involves the use of a legal financial tool such as a promissory note as a written promise to declare that a party (borrower) would pay another (lender) at a specific period of time.

Thus, when goods are sold to a customer by a business entity and the customer promises to pay an amount of money at a certain future time period it is known as a promissory agreement.

A promissory note can be defined as a signed document that contains a written promise by a customer to pay a specific amount of money to an individual or business firm, on demand or at a certain future time period, for the goods or services purchased.