1. The matching principle requires: A) That expenses be ignored if their effect on the financial statements are less important than revenues to the financial statement user. B) The use of the allowance method of accounting for bad debts. C) That bad debts be disclosed in the financial statements. D) That bad debts not be written off. 2. A company had the following purchases during the current year: January: *10 units at $120 February 20 units at $130 May: 15 units at $140 September: 12 units at $150 November: 10 units at $160 On December 31, there were 26 units remaining in ending inventory. These 26 units consisted of 2 from January, 4 from February, 6 from May, 4 from September, and 10 from November. Using the specific identification method, what is the cost of the ending inventory? A) $3,500 B) $3,800 C) $3,960. D) $3,280 3. After posting is completed, there may be an error if: A) The sum of the customer account balances does not equal the total in the sales journal. B) The sum of the accounts receivable ledger does not equal the balance in the Sales account. C) The sum of the customer account balances does not equal the general ledger Accounts Receivable controlling account balance. D) The balance in the sales journal does not equal the Accounts Receivable account balance