2. When a promissory note is paid off in full and on time, we say the note was: A) Honored B) Dishonored C) Financed D) Leveraged 3. All of the following are reported as current liabilities except A) accounts payable. B) note payable (5 year). C) wages payable. D) uneared revenues. 4. Sales taxes collected by the retailer are recorded as an) A) revenue. B) liability C) expense. D) asset. 5. On January 2, 2017, Lester Company, a calendar-year company, issued $40,000 of notes payable, of which $5,000 is due on January 2 for each of the next eight years the first payment is due January 2, 2018). The proper balance sheet presentation on December 31, 2017, is A) B) C) D) Current Liabilities, $40,000. Current Liabilities, $5,000; Long-Term Liabilities, $35,000. Long-Term Liabilities, S40,000. Current Liabilities, $35,000; Long-Term Liabilities, $5,000