Spando Apparel uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure note was included in a recent annual report: Inventories ($ in millions): Total inventories LIFO reserve 2021 $ 685 (123) $ 562 2020 $664 (71) $593 The company's income statement reported cost of goods sold of $3,320 million for the fiscal year ended December 31, 2021. Required: 1. Spando adjusts the LIFO reserve at the end of its fiscal year. Prepare the December 31, 2021, adjusting entry to record the cost of goods sold adjustment. 2. If Spando had used FIFO to value its inventories, what would cost of goods sold have been for the 2021 fiscal year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Spando adjusts the LIFO reserve at the end of its fiscal year. Prepare the December 31, 2021, adjusting entry to record the cost of goods sold adjustment. (Enter your answers in millions. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the cost of goods sold adjustment. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 If Spando had used FIFO to value its inventories, what would cost of goods sold have been for the 2021 fiscal year? (Enter your answer in millions.) Cost of goods sold million