Axle Motors Inc has a December 31 year-end. On November 28, 20X2, the company sold inventory for $600 on account of the terms 2/10, n/30. On February 28, 20X3, the company recognized the account as uncollectible.
If Axle Motors Inc uses the specific write-off method, what can be said with respect to the matching principle?

A) The matching principle is not violated using the specific write-off method.
B) 20X2 earnings are overstated by $600, and 20X3 earnings are understated by $600.
C) 20X2 earnings are understated by $600, and 20X3 earnings are overstated by $600.
D) 20X2 earnings are overstated by $600, and 20X3 earnings are overstated by $600.
E) 20X2 earnings are understated by $600, and 20X3 earnings are understated by $600.