Company A buys 5,000 units of inventory for a total of $10,000 from an unrelated third-party company. Later, Company A sells these units to its subsidiary, Company B, for $15,000 in an intercompany inventory transaction.

Company B sells 3,000 of the 5,000 units to unrelated customers for $12,000 and holds the other 2,000 units in inventory until customers buy them in the future.

What is the correct elimination journal entry to account for the intercompany inventory transfer?

I know the Answer is

DebitCredit

Sales15,000

COS13,000

Inventory2,000

I need to understand how we got there?