Perkins Company owns 85% of Sheraton Company. Perkins Company sells merchandise to Sheraton Company at 20% above
Question:
Perkins Company owns 85% of Sheraton Company. Perkins Company sells merchandise to Sheraton Company at 20% above cost. During 2019 and 2020, such sales amounted to $450,000 and $486,000, respectively. At the end of each year, Sheraton Company had in its inventory onethird of the amount of goods purchased from Perkins during that year.
Required:
Prepare the workpaper entries necessary to eliminate the effects of the intercompany sales for 2019 and 2020.
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Part A 20 20 2019 1 Sales Purchases Cost of Goods ...View the full answer
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