Brief Exercise 8-07

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.

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

LIFO reserve at December 31, 2020

$enter a dollar amount

LIFO effect for 2020

$enter a dollar amount

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What is the journal entry needed to record the LIFO effect at December 31, 2020?(If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2020

enter an account title for the journal entry on December 31, 2017

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31, 2017

enter a debit amount

enter a credit amount