To account for related companies as a single entity all the effects of intercompany sales and purchases are eliminated. Total recorded inter-entity sales are deleted regardless of whether it is from parent to subsidiary or from subsidiary to parent. The total for consolidated inventory.

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Chapter 5, Problem 5P

To determine

Introduction: To account for related companies as a single entity all the effects of intercompany sales and purchases are eliminated. Total recorded inter-entity sales are deleted regardless of whether it is from parent to subsidiary or from subsidiary to parent.

The total for consolidated inventory.

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