Blue 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 $1,106,700. At December 31, 2020, Blue's internal reports indicated that the FIFO inventory balance was $2,828,000 and for external reporting purposes the LIFO inventory balance was $1,614,600. (a) Your answer is correct. What is the amount of the LIFO reserve and the LIFO effect related to 2020? LIFO reserve at December 31, 2020 2$ 1213400 LIFO effect for 2020 2$ 106700 eTextbook and Media List of Accounts Attempts: 1 of 5 used (b) 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 O 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

Blue 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 $1,106,700. At December 31, 2020, Blue's internal reports indicated that the FIFO inventory balance was $2,828,000 and for external reporting purposes the LIFO inventory balance was $1,614,600. (a) Your answer is correct. What is the amount of the LIFO reserve and the LIFO effect related to 2020? LIFO reserve at December 31, 2020 2$ 1213400 LIFO effect for 2020 2$ 106700 eTextbook and Media List of Accounts Attempts: 1 of 5 used (b) 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 O 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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