Can you please help me solve the intercompany transactions? With the ones below, what accounts...
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Accounting
Can you please help me solve the intercompany transactions? With the ones below, what accounts are affected and by how much? What statements do these changes go on? Year end for the below are December 2018. O is parent and E is the sub.
1. During 2018, E made sales to O for $50000. Of this amount, $20000 remained in inventory at Dec 31, 2018.
2. During 2017, O made sales to E. At Dec 31, 2017, $10000 remained in inventory. The balance was sold in 2018.
For both, the markup is 25% and tax is 30%.
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