A disadvantage of using the gross price method to account for cash discounts extended by the seller to its customer is that

A) the method reports accounts receivable at the net realizable value
B) the method overstates the current sales and the accounts receivable at the end of the period
C) the method requires more bookkeeping than the net price method
D) the method enables sales returns and allowances to be recorded at gross instead of net amounts

The gross price method records sales at the full sales price without any deduction for cash discounts, which overstates both the current sales and the accounts receivable at the end of the period. As a result, the net realizable value of accounts receivable is not accurately reflected on the balance sheet. The net price method, on the other hand, records sales at the net price after deducting any cash discounts offered. The net price method is simpler and more accurate in reflecting the true value of accounts receivable.