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When a company uses LIFO for external reporting purposes and FIFO for internal reporting purposes, an Allowance to Reduce Inventory to LIFO account is used.
When a company uses LIFO for external reporting purposes and FIFO for internal reporting purposes, an Allowance to Reduce Inventory to LIFO account is used. This account should be reported on the income statement in the Other Expenses and Losses section. O on the income statement in the Other Revenues and Gains section. O on the balance sheet in the Current Assets section. O on the income statement in the Cost of Goods Sold
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