1. The person that owes the debt in a promissory note is called the payee A) True B) False 2. Which of the following methods of recording bad debts expense is also called the Income Statement method? A) Percentage of receivables method B) Percentage of net credit sales method C) Direct write-off method D) Both percentage of sales method and direct write-off method 3. Which of the following is a tax required to be paid by the employer but not the employee? A) Federal income tax B) State unemployment tax C) Medicare tax ) Social security tax