Which One of the Following Statements Regarding Sales Discounts Is

Multiple Choice

Which one of the following statements regarding sales discounts is correct?

A) If a company offers a discount to encourage prompt payment and the discount is taken, the discount reduces the amount of net sales.
B) Credit terms of "2/10, n/30" mean that if payment is made in two days, a 10% discount may be taken; if not paid within two days, the full invoice price will be due in thirty days.
C) The terms "sales discounts" and "sales credits" are used interchangeably by a company.
D) The Sales Discounts account is an expense account.