1. Trade receivables are a sub classification of accounts receivable. True False 2. When using the direct write-off method, bad debts are written off directly to the allowance for uncollectible accounts. True False 3. A company using the periodic inventory system to record the reduction of inventory to NRV would record the following journal entry to record inventory at market using the allowance method: Loss Due to Write-Down of Inventory X,XXX Allowance to Reduce Inventory to Market X XXX 4. The gross profit method is an appropriate method for determining the cost of inventory for interim financial statements. True False