1. On the 20th June 2023, Proton Motors Ltd sold inventories costing $120,000 to Electron...
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1. On the 20th June 2023, Proton Motors Ltd sold inventories costing $120,000 to Electron Ltd for $100,000 on credit. At year-end, 70% of these goods remained in Electron Ltds closing inventory. Electron Ltd paid the outstanding balance to Proton Motors Ltd on 5th July 2023. We have recognized a loss of $20,000 from the sale which has reduced our taxes. Is there anything else we need to do? Please provide any necessary journal entries. 2. At the beginning of the current period, Proton Motors Ltd sold some old machinery to Electron Ltd for $81,000. The machinery originally cost Proton Motors Ltd $500,000, is four years old and had accumulated depreciation of $400,000 at the date of the sale. The
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