Select all thet apply Define the Decounts lost account by selecting the statements below that correctly describe this account. (Checic aut in is an expense accourt. In is reported on the income statement. It is debited when a discount is not taken and when using the gross method of recording purchases. It is debited when a discount is not taken and when using the net method of recording purchases. It is reported on the balance sheet.

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To define the Discounts Lost account, let's analyze each statement provided:

1. **"It is an expense account."**  
   - **True.** Discounts Lost is considered an expense because it represents the cost incurred when a discount is not taken advantage of.

2. **"It is reported on the income statement."**  
   - **True.** As an expense account, Discounts Lost is reported on the income statement, affecting the net income.

3. **"It is debited when a discount is not taken and when using the gross method of recording purchases."**  
   - **True.** Under the gross method, purchases are recorded at full price, and if a discount is not taken, the Discounts Lost account is debited.

4. **"It is debited when a discount is not taken and when using the net method of recording purchases."**  
   - **False.** Under the net method, purchases are recorded at the discounted price, and if the discount is not taken, the full amount is recorded as an expense, not specifically as Discounts Lost.

5. **"It is reported on the balance sheet."**  
   - **False.** Discounts Lost is not reported on the balance sheet; it is an income statement item.

### Summary of Correct Statements:
- It is an expense account.
- It is reported on the income statement.
- It is debited when a discount is not taken and when using the gross method of recording purchases.

Thus, the correct statements that describe the Discounts Lost account are the first three.
The Discounts Lost account is an expense reported on the income statement. It is debited when a discount is not taken using the gross method of recording purchases.

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