What is the amount of the lifo reserve

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Gap Inc. uses the LIFO method for financial reporting purposes but FIFO for internal reporting purposes. At January 1, 2020, the LIFO reserve has a credit balance of $1,200,000. At December 31, 2020, GAP's internal reports indicated that the FIFO inventory balance was $2,500,000 and for external reporting purposes the LIFO inventory balance was $1,500,000.

Question 1 : What is the amount of the LIFO reserve and the LIFO effect related to 2020?

Question 2 : What is the journal entry needed to record the LIFO effect at December 31, 2020?

Reference no: EM132512364

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