Can you help me with accounting questions A parent company purchases merchandise from its subsidiary, whichmarks up its products by 30% on cost. The parent's beginning inventoryincludes $52,000 in merchandise from the subsidiary. During the year, thesubsidiary sells $800,000 retail value merchandise to the parent. Theparent's ending inventory includes $65,000 in merchandise from thesubsidiary. What amount should ending inventory be decreased by in theelimination entries?A) $13,000B) $15,000C) $18,200D) $20,800

Step 1: Definition of Inventory Elimination in ConsolidationIn consolidated financial statements,…

Answered: A parent company purchases merchandise…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 2EB: X Company accepts goods on consignment from C Company, and also purchases goods from P Company...

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