Which of the following statements is TRUE?

-The account Sales Returns and Allowances is used under both the net and gross methods of recording receivables and it results in a reduction in net income.

-The account Sales Discounts Forfeited is used under the net method of recording receivables and it results in a reduction in net income.

-The account Allowance for Sales Discounts reports an estimate of sales discounts remaining to be taken on the current year's sales and it is used under the net method of recording receivables.

-The account Sales Discounts reports the amount of sales discounts taken by customers and it is used under the net method of recording receivables.