Company A is parent company with subsidiary Company B. The following intercompany sales were recorded for the year ended 31 December 2020. - Intercompany sales at invoice prices amounted to RM100,000 of which RM40,000 remained in the closing inventories of the buying company. The profit element on intercompany sales to the selling company was at 20% of the invoice prices. Required: Show the journal entries to eliminate the above intercompany transactions.

Company A is parent company with subsidiary Company B. The following intercompany sales were recorded for the year ended 31 December 2020. - Intercompany sales at invoice prices amounted to RM100,000 of which RM40,000 remained in the closing inventories of the buying company. The profit element on intercompany sales to the selling company was at 20% of the invoice prices. Required: Show the journal entries to eliminate the above intercompany transactions.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 2P

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