If a Company Employs the Net Method of Recording Accounts

Multiple Choice

If a company employs the net method of recording accounts receivable from customers, then sales discounts forfeited should be reported as ________.

A) sales discounts forfeited on the balance sheet an item of "other revenue and expense" on the income statement
B) an item of "other revenue and expense" on the income statement
C) an increase to sales revenue on the income statement
D) a deduction from sales revenue on the income statement