Cash Discounts When a company records accounts receivable using the gross price method and the customer pays and takes advantage of the discount, which of the following is true? a. The company credits an account entitled Sales Discounts Not Taken b. The company records accounts receivable and sales at the net invoice price and no further adjustment is required. c. No adjustment is needed because the amount of cash received is equal to the recorded amount of the receivable. Od. The difference between the cash received and the original amount of accounts recelvable is recorded as a debit to Sales Discounts Taken. Allowance for Doubtful Accounts A method of estimating bad debts that focuses on the income statement rather than the balance sheet is the allowance method based on: a. the balance in the trade receivable accounts b. aging the trade receivable accounts c. direct write-off d. credit sales Debt Securities For investments in held-to-maturity debt securities: 1. Unrealized holding gains and losses are disclosed in the notes to the financial statements. II. Interest income and realized gains and losses on sales are included in net income. a. I only. b. II only C. I and II. d. Neither I nor