What implied annual interest rate is Eastman's customer incurring by failing to take the cash (sales) discount? (Assume a 365-day year.) Additional Instruction With a discount rate of 1% and assuming a 365-day year, Eastman's customer is incurring an annual interest rate of % . 3. Which methodrecording accounts receivable at the gross price or net priceis theoretically superior? Why? Recording receivables at the is the theoretically superior method because it values the receivable at the net realizable value and reports sales revenue at the amount that a company expects to be entitled. If receivables are recorded at their , sales revenue is overstated.