When the net price method is used to record credit sales, the sales discounts not taken account is reported as a(n)

Question

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When the net price method is used, sales discounts not taken are reported as an addition to other revenue on the income statement. This is because the sales are initially recorded at the net amount (after discount), and if the discount is not taken, the additional amount received is considered other revenue.

When the Net Price Method Is Used to Record Credit