Lesson 10 Discussion Forum a Kimbel Company uses the net method of accounting for sales discounts. Kimbel also offers trade discounts to various groups of buyers. On August 1, 2016, Kimbel sold some accounts receivable without recourse incurring a finance charge. Additionally, Kimbel has some notes receivable bearing interest, with the principal and interest due at maturity. The notes were received on October 1, 2016, and mature on September 30, 2018. Kimbel's operating cycle is less than 1 year. You must post your initial response to the discussion board by Wednesday at 11:59 p.m. In your initial post, answer the following questions: 1. Using the net method, how should Kimbel account for the sales discounts at the date of sale? What is the rationale for the amount recorded as sales under the net method? 2. Using the net method, what is the effect on Kimbel's sales revenues and net income when customers do not take the sales discounts? You will reply to 2 peers' responses by Sunday at 11:59 p.m. In your response to classmates, answer the following questions toward a classmate that did not agree with your responses to the questions below: 1. What is the effect of trade discounts on sales revenues and accounts receivable? Why? 2. How should Kimbel account for the accounts receivable factored on August 1, 2016? Why? 3. How should Kimbel account for the note receivable and the related interest on December 31, 2016? Why