Normal No Spacing Heading 1 Head Blue Co. uses LIFO for financial reporting purposes but FIFO for internal reporting purposes. On Jan. 1, 2020, the LIFO reserve had a credit balance of $1,200,000. On Dec. 31, 2020 Blue reported the following: FIFO Inventory Balance: $ 2,500,000 LIFO Inventory Balance: $ 1,400,000 Prepare the December 31, 2020 journal entry to record the LIFO effect