The following items appear on the balance sheet of a company with a two-month operating cycle. Identify the proper classification of each item as follows: C if it is a current liability, L if it is a long¬ term liability, or N if it is not a liability.

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1. Sales taxes payable. 2. FUTA taxes payable. 3. Accounts receivable. 4. Accrued payroll payable. 5. Wages payable. 6. Notes payable (due in 6 to 12 months). 7. Notes payable (due in 120 days). 8. Current portion of long-term debt. 9. Notes payable (mature in five years). 10. Notes payable (due in 13 to 24 months).