Exercise 8-1A Determine proper classification of liabilities (LO8-1) Select the appropriate reporting method for each of the items listed below. Item Reporting Method 1. Accounts payable. 2. Current portion of long-term debt. 3. Sales tax collected from customers. 4. Notes payable due next year. 5. Notes payable due in two years. 6. Advance payments from customers. 7. Commercial paper. 8. Unused line of credit. 9. A contingent liability with a probable likelihood of occurring within the next year and can be estimated. 10. A contingent liability with a reasonably possible likelihood of occurring within the next year and can be estimated Current liability Disclosure note only. Long-term liability Not reported