Upon receving the goods, they are inspected by receiving officer. If there is any problem with the received goods, i.e. damage, leakage, mismatch goods with the order, etc., the goods may not be accepted. Then the goods must be returned to the vendor with the Return Slip. In this case, the inventory account and the vendor account(accounts payable) must be updated according to the situation. Alternatively, if there is a problem with the goods, the business may not return the goods back, but the business can demand a discount(allowance) instead of returning the goods back. If the demand is accepted by the vendor, then the vendor acount and the inventory account must be updated. The inventory account is updated in order to reflect the decrease in the cost. For an allowance to take part, it is not necesarry for the goods to be faulty. Sometimes, the trade between the businesses may exceed a predetermined total amount or quantitiy, the vendor, then, may offer a discount. Thereofre, the correct option is A.