Name Date: 1. Adjusting entries can be classified as A) postponements and advances. KB) accruals and prepayments. C) prepayments and postponements. D) accruals and advances. Use the following to answer questions 2-3: Use the following inventory information for the month of July. July S 1 7 22 Beginning inventory 20 units at $20 Purchases 70 units at $21 Purchases 10 units at $22 400 1,470 220 $2,090 A physical count of merchandise inventory on July 30 reveals that there are 35 units on han 2. Using the average cost method, the value of ending inventory is A) $700.00 B) $731.50. C) $735.00 D) $770.00 3. Using the LIFO inventory method, the amount allocated to cost of goods sold! A) $1,375 B) $1,380 C) $1,345. D) $1,320. 4. Using accrual accounting, expenses are recorded and reported only A) when they are incurred whether or not cash is paid. B) when they are incurred and paid at the same time. C) if they are paid before they are incurred. D) if they are paid after they are incurred