Cut write-off method of accounting for uncollectible receivables is! A. an example of the balance sheet approach. B. an example of the income statement approach. C. not in conformity with GAAP. D. in conformity with the matching principle. 17. Gorp Corp. uses the percentage-of-sales method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts has a credit balance of $1,500. During the year Gorp Corp. writes off uncollectible receivables of $1,200. At the end of the year. Gorp Corp. has net credit sales $135,000, of which 2% are deemed uncollectible. What is Brickman's year-end balance in Allowance for Bad Debts? A. $300 B. $2,400 C. $2,700 D. $3,000 78. On December 12, Howard's Hardware sells materials for $7,800 to John Smith. Smith signs a 60-day! promissory note at 7% annual interest. On December 12, the journal entry made by Howard's Hardware for the sale to John Smith will include a A. credit to Sales Revenue for $7,800. B. debit to Accounts Receivable for $7,710. C. credit to Interest Revenue for $90. D. debit Interest Receivable for $90