1) The expense recognition (matching) principle requires use of the allowance method of accounting for bad debts. 1) TRUE/FALSE. 2) As long as a company accurately records total credit sales information, it is not necessary to have separate accounts for specific custom ers. 2) 3) A company borrowed 10,000 by signing a six-month promissory note at 5% interest. The amount ofinterest to be paid at maturity is $25. 3) Problem 4) A company has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current credit balance (bef ore adjustments) in the allowance for doubtful accounts is $1,200. The journal entry to record the adjustment would be how much? T or F 5) A company borrowed $16,000 by signing a 4-month promissory note at 12%. The amount of interest to be paid at maturity is $640.5) Tor F 6) BizCom's customer, Redding, paid off an $8,300 balance on its account receivable. BizCom should record the transaction as a debit to Accounts Receivable-Redding and a credit to Cash. 6) Problem 7) A company has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current debit balance (before adjustments) in the allowance for doubtful accounts is $1,200. The journal entry to record the adjustment would be how much? T or F 8) No attempt is made to estimate bad debts expense under the allowance method of accounting for uncollectible accounts receivable. 8) 9) Allowance for Doubtful Accounts is a contra asset, its balance is added to Accounts receivable. 9) T or F 10) The aging of accounts receivable involves classifying each account receivable by how long it is past its due date and estimating the percent of each uncollectible class. 10)