The necessary adjusting journal entry for a lower of cost or market calculation is: DR Inventory. CR Cost of Goods Sold equal to the difference between the lower of cost or market calculation and the cost calculation, DR Inventory, CR Cost of Goods Sold equal to the lower of cost or market calculation, DR Cost of Goods Sold, CR Inventory equal to the lower of cost or market calculation O DR Cost of Goods Sold, CR Inventory equal to the difference between the lower of cost or market calculation and the cost calculation