1 points When is it acceptable to use the direct write-off method to account for uncollectible accounts? Multiple Choice When the expected bad debts are significant When the company pledges its accounts receivables When the expected bad debts are not significant 11 When the expected bad debts are significant points When the company pledges its accounts receivables When the expected bad debts are not significant It is never acceptable to use the direct write-off method under GAAP When the company sells its accounts receivables 12 The Liccorish Pizza bought $5,000 worth of merchandise from TechCom and signed a 90-day, 10% promissory note for the $5,000. TechCom's journal entry to record the transaction is 1 points Multiple Choice Accounts Receivable Sales 5,000 5,000 Notes Receivable 5,000 5,000 Sales 12 Notes Receivable Sales 1 points 5,000 5,000 Accounts Receivable 5,125 Sales 5,125 Notes Receivable Sales 5,125 5,125 Notes Receivable 5,000 Interest Receivable 125 Sales 5,125