Recording and Reporting a LIFO Reserve At the end of the annual accounting period, the inventory records of Boton Company show the following. The company uses FIFO for internal purposes and LIFO for income tax and external reporting purposes. 2020 2021 Ending inventory at FIFO $100,000 $180,000 Ending inventory at LIFO 40,000 70,000 a. Assume that the inventory difference is recognized in the accounts, and the balance in the allowance account was zero at the beginning of 2020. Provide the necessary journal entry at year-end 2020 and 2021. Date Account Name Dr. Cr. Dec 31, 2020 Cost of Goods Sold 60,000 0 Allowance to Reduce FIFO Inventor 0 60,000 Dec 31, 2021 Cost of Goods Sold 1 110000 Allowance to Reduce FIFO Inventor 0 110,000 b. Show how inventory should be shown on its 2020-2021 comparative balance sheets. Balance Sheet, Dec 31 2020 2021 Current Assets Inventory $ 40,000 $ 70,000 c. If the company reported cost of goods sold of $480,000 in 2021 using LIFO, what would cost of goods sold be using FIFO? $ 370,000 x