The appropriate journal entry for the transactions involving the LIFO reserve and market value adjustments is determined by the particular situation in the firm.If LIFO inventory is greater than FIFO inventory,
A)cost of goods sold is credited
B)cost of goods sold is debited
C)the allowance account is debited
D)the allowance account is credited
E)the LIFO reserve account is debited
F)both A and C
G)both B and D

Question

Quizplus · Accepted Answer

When LIFO inventory is greater than FIFO inventory, the LIFO reserve account is debited and the allowance account is credited to adjust the cost of goods sold to the FIFO amount.

The Appropriate Journal Entry for the Transactions Involving the LIFO