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.

The discounts lost account is indeed an expense account that reflects lost opportunities for savings due to not taking discounts. It is reported on the income statement, highlighting the cost of not taking advantage of early payment discounts—an important aspect of cost management. When using the gross method of recording purchases, this account is debited when a discount is not taken. This is critical for maintaining accurate financial records. In contrast, when using the net method, lost discounts are not recorded in this manner, as the net method already takes potential discounts into account at the purchase stage.