1. Under the gross method, when the customer pays within the discount period, which of the following accounts is not recorded in the journal entry to record the cash receipt?

1. Sales
2. Accounts Receivable
3. Cost of Goods Sold
4. Cash

2. When comparing the gross and net methods of recording sales discounts, which of the following entries differ between the two methods?

1. recording cash received when the discount is not taken
2. recording adjusting entry for sales discount allowances
3. recording cash received when the discount is taken
4. recording the sale of goods