13. Fetherston Company's goods in transit at December 31 include: purchases made sales made (I) FOB destination (2) FOB shipping point (3) FOB destination (4) FOB shipping point Which items should be included in Fetherston's inventory at December 31? a. (2) and (3) b. (1) and (3) c. (1) and (4) d. (2) and (4) 14. Under the direct writ debited a. when a credit sale is past due. b. at the end of each accounting period c. whenever a pre-determined amount of credit sales have been made. d. when an account is dserhniaked to be uncollectible. e-off method of accounting for uncollectible accounts, Bad Debt Expense is 15. When two or more people get together for the purpose of circumventing prescribed controls, it is called a. a fraud committee. b. bonding of employees. c. a division of duties. d. collusion. 16. The percentage of receivables basis for estimating uncollectible accounts emphasizes a. b. c. d. cash realizable value, the relationship between accounts receivable and bad debt expense. income statement relationships. the relationship between sales and accounts receivable. 17. Randie Company lends Luann Company $10,000 on April 1, accepting a four-month, 6% interest note. Randie Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared? a. Note Receivable Cash Interest Revenue... Interest Revenue Interest Revenue ..usnurusNus 10,000 50 50 200 10,000 50 50 200 b. Cash c. Interest Receivable .. d. Interest Receivable... In a period of rising prices, the costs allocated to ending inventory may be understated in the a. average-cost method. b. FIFO method. c. gross profit method. d. LIFO method 18. 4