Q5.12: Which of the following statements is NOT true about the Sales Discounts account? A Sales Discounts is a contra revenue account to Sales Revenue and has a debit balance. B D Sales Discounts is increased when goods are sold on account subject to credit terms. Sales Discounts accumulates the total discounts taken by customers for prompt payment of their accounts. Net sales is computed by deducting Sales Returns and Allowances and Sales Discounts from Sales Revenue. A