A company has the following information related to its ending Inventory: Assume 2020 is its first year of operation. The company uses LIFO for external reporting purpose FIFO LIFO 12/31/2020 $ 400,000 $ 300.000 12/31/2021 480,000 350,000 Which of the following statements is correct? AlThe adjusting entry should be a debit to the LIFO Reserve by $130,000 on 12/31/2021. ByThe adjusting entry should be a credit to LIFO reserve for $30,000 on 12/31/2021 C)Cost of goods sold is higher under LIFO than under FIFO by $130,000 in 2021. D) The adjusting entry should be a debit to the LIFO Reserve by $100,000 on 12/31/2020, SA D Next Previous