Which of the following recording procedures would result in the highest cost of goods sold for 2010?

1. Recording purchases at gross amounts

2. Recording purchases at net amounts, with the amount of discounts not taken shown under "other income and expense" in the income statement

A)

1

B)

2

C)

Either 1 or 2 will result in the same cost of goods sold.

D)

Cannot be determined from the information provided.