What is the journal entry needed to record the LIFO effect

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Question - Splish Company 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 $1,312,800. At December 31, 2020, Splish's internal reports indicated that the FIFO inventory balance was $2,834,600 and for external reporting purposes the LIFO inventory balance was $1,420,500.

Required -

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

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

Reference no: EM132749592

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