11. Under the allowance method, estimated uncollectible receivables are credited to a. Uncollectible Accounts Expense. b. Bad Debt Expense. c. Accounts Receivable. d. Allowance for Doubtful Accounts. 12. Under the percentage-of-receivables basis, the amount of bad debt expense is the difference between the required balance and the existing balance in the allowance account. T F 13. FOB shipping point means the buyer pays for the freight T F 14. FOB Destination means the buyer pays the freight T F 15. Inventory items on an assembly line in various stages of production are classified as a. raw materias b. merchandise inventory c. work in process d. finished goods 16. Which of the following should NOT be included in the physical inventory of a company a. Goods held on consignment from another company b. Goods shipped on consignment to another company c. Goods in transit from another company shipped FOB shipping point d. None of the answer choices are correct 17. When the terms of sale are FOB shipping point, ownership of the goods remains with the seller until the goods reach the buyer. T F 18. Which of the following statements about Visa credit card sales is incorrect? a. The retailer is not involved in the collection process. b. Two parties are involved. c. The retailer receives cash more quickly than it would from individual customers on account. d. The credit card issuer makes the credit investigation of the customer. 100OUNTING 101 SPRING 2018 PAGE | 3