An expense resulting from failing to take advantage of cash discounts when using the net method of recording purchases is called:

A) Sales discounts.
B) Trade discounts.
C) Purchases discounts.
D) Discounts lost.
E) Discounts earned.

Discounts lost are expenses resulting from failing to take advantage of cash discounts when using the net method of recording purchases. This is because when using the net method, purchases are recorded at their full price and the discount amount is not taken into account until the payment is made. Failing to take advantage of the cash discount means the full price is paid, resulting in a loss of the discount.