I. What is the amount of interest accrued on $3,600 at 7% for 60 days (rounded to nearest dollar)? A. $41 B. $60 C. $252 D. $600 2. Heather's Hair Products estimates that $534 of its $28,720 Accounts Receivable are uncollectible What is the net realizable value of Accounts Receivable? A. $534 B. $28,186 C. $28,720 D. $29,274 3. The direct 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 4. 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 5. 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 6. Which of the following statements is TRUE? A) Accounts receivable are more liquid than cash. B) Notes receivable are always classified as current assets. C) Notes receivable usually have longer collection terms than accounts receivable. D) Accounts receivable are liabilities