- Paragraph 3 On January 1, 2023 Subsidiary held merchandise acquired from Parent for $10,000. During 2013 Parent sold merchandise to Subsidiary for $ 30,000, of which Subsidiary holds $6,000 on December 31, 2023. Parent's gross profit on sales is 30% for both years. On December 31, 2023 Subsidiary still owes Parent $2,000 for merchandise. 4) Make all of the entries pertaining to intercompany sales and inventories

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Paragraph 3 On January 1, 2023 Subsidiary held
merchandise acquired from Parent for $10,000. During
2013 Parent sold merchandise to Subsidiary for $
30,000, of which Subsidiary holds $6,000 on December
31, 2023. Parent's gross profit on sales is 30% for both
years. On December 31, 2023 Subsidiary still owes
Parent $2,000 for merchandise. 4) Make all of the
entries pertaining to intercompany sales and inventories
Transcribed Image Text:- Paragraph 3 On January 1, 2023 Subsidiary held merchandise acquired from Parent for $10,000. During 2013 Parent sold merchandise to Subsidiary for $ 30,000, of which Subsidiary holds $6,000 on December 31, 2023. Parent's gross profit on sales is 30% for both years. On December 31, 2023 Subsidiary still owes Parent $2,000 for merchandise. 4) Make all of the entries pertaining to intercompany sales and inventories
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