RUE/FALSE 1) The percent of sales method for estimating bad debts uses only balance sheet account balances to estimate bad debts. 1) 2) The aging method of determining bad debts expense is based on the knowledge that the longer a receivable is past due, the higher the likelihood of noncollection. 2) 3) The accounts receivable method to estimate bad debts obtains the estimated balance in the Allowance for Doubtful Accounts in one of two ways: (1) computing the percent uncollectible from the total allowance for doubtful accounts or (2) aging accounts receivable. 3) 4) When using the allowance method of accounting for uncollectible accounts, the recovery o bad debt would not be recorded as a debit to Cash and a credit to Bad Debts Expense. 4) f a 5) Notes receivable are not classified as a current liabilities. 5) 6) For legal reasons, it is not advisable to accept a note receivable in exchange for an overdue account receivable. 6) 7) The expense recognition (matching) principle requires that accrued interest on outstanding notes receivable be recorded at the end of each accounting period. 7) 8) A company borrowed $20,000 by signing a 1 80-day promissory note at 9%. The maturity value of the note is: $21,800 8) Problems 9) A company has $90,000 in outstanding accounts receivable a to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is an $800 debit. The journal entry to record the adjustment is what dollar amount? nd it uses the allowance method 10) Uniform Supply accepted a $4,800 180-day, 12% note from Tracy Janitorial on October 17. What is the amount of interest to be recorded on December 31