All of the following are advantages of LIFO except: recent costs are matched against current revenues. a deferral of income tax occurs as long as the price level increases. an improvement of cash flow. an approximation of the physical flow of goods is achieved. Under the retail inventory method: A company measures inventory on its balance sheet by converting retail prices to cost A company measures inventory on its balance sheet at current selling prices. A company measures inventory on its balance sheet on a LIFO basis. None of the above is correct. Alexandra's dress shop buys dresses from Ala Manufacturing. Alexandra purchased dresses from Ala on July 17, and received an invoice with a list price amount of $6,000 and payment terms of 2/10, n/30. Alexandra uses the net method to record purchases. Alexandra Should record the purchase at: $5, 940. $5, 880. $6,000. $6, 120