Inventory Flashcards
1
Q
How is LIFO reported in the general ledger if two methods of inventory are used, one for internal and one for external reporting?
A
LIFO utilizes a reserve account which is a valuation account
Adjusted are made to the reserve account by adjusting the expense (COGS) and the inventory valuation account
2
Q
What is included in the calculation for both the cost and retail amounts of goods available for sale?
A
Purchase returns as an adjustment to both
