Accountants are frequently called on to choose between alternative accounting methods. Which of the following choices do you think is most true to the conservatism principle? Explain.

1. FIFO or LIFO

2. Net or Gross method of accounting for cash discounts allowed to customers.

3. Using an Allowance for Doubtful Accounts account or not.

Can you think of an end-of-period entry that would affect the Cash account in the general ledger?