If a company employs the gross method of recording accounts receivable from customers, then sales discounts taken

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Question:

If a company employs the gross method of recording accounts receivable from customers, then sales discounts taken should be reported as

a) an item of "other expense" in the income statement.
b) a deduction from sales in the income statement.
c) a deduction from accounts receivable in determining the net realizable value of accounts receivable.
d) sales discounts forfeited in the cost of goods sold section of the income statement.