If a company employs the gross method of recording accounts receivable from customers, then sales discounts taken should be reported as an item of "other expense" in the income statement. a deduction from sales in the income statement. sales discounts forfeited in the cost of goods sold section of the income statement. a deduction from accounts receivable in determining the accounts receivable amount expected to be collected.

a deduction from sales in the income statement

Explanation:

As we know that the  income statement recognize the expenses incurred and the revenues earned during the particular period of time

As the company applied the gross method so the sales discount should be deducted from the sales amount and are shown on the credit side of the income statement as it is earning for the company and the same is to be credited.

im thinking a but im not 100% sure

explanation:

answerjointly by the fed and by the behavior of individuals who hold money and of banks in which money is held;