19. Goods in transit should be included in the inventory of the buyer when the a. terms of the sale are FOB shipping point b. terms of the sales are FOB destination c. goods reach the buyer d. public carrier accepts the goods from the seller 20. Blake Company has a credit balance of $3,090 in Allowance for Doubtful Accounts. The total estimated uncollectibles under the percentage-of-receivables basis is $6,020. What is the bad debt expense using the percentage-of-receivable method? a. $9,110 b. $5,860 c. $2,930 d. $1,465 21. Blake Company has a credit balance of $1.050 in Allowance for Doubtful Accounts. It is estimated that 1% of credit sales for $450,000 will be uncollectable. What is the adjusted Allowance for Doubtful Account balance by using the percentage-of-sales method? a. $4,500 b. $5,550 c. $3,450 d. $2,650 22. Under the lower-of-cost-or-market basis, market is defined as current replacement cost. 23. Some argue that the use of FIFO in a period of inflation enables a company to avoid reporting paper (phantom) profit as economic gain. 24. When the terms of sale are FOB destination, ownership of the goods remains with the selle until the goods a. reach the buyer. b. are paid for by the buyer c. are shipped d. are accepted by the public carrier. 25. Companies report accounts receivable on the balance sheet at gross realizable value. b. face value. c. cash (net) realizable value. d. cost a