True or False

When a company sells a $$100$ service with a $20\%$ trade discount, $$80$ of revenue is recognized.

A sales discount represents a reduction, not in the selling price of a good or service, but in the amount to be paid by a credit customer if payment is made within a specified period of time.

The Sales Discounts account is an expense account.

If a company has total revenues of $$100,000,$ sales discounts of $$3,000,$ sales returns of $$4,000,$ and sales allowances of $$2,000,$ the income statement will report net revenues of $$91,000.$

The Allowance for Uncollectible Accounts is a contra asset account representing the amount of accounts receivable that we do not expect to collect.

Two important ratios that help in understanding the company's effectiveness in managing receivables are the receivables turnover ratio and the average collection period.