Company A is parent company with subsidiary Company B. The following intercompany sales were recorded for the year ended 31 December 2020.

- Intercompany sales at invoice prices amounted to RM100,000 of which RM40,000 remained in the closing inventories of the buying company.

The profit element on intercompany sales to the selling company was at 20% of the invoice prices.

Required: Show the journal entries to eliminate the above intercompany transactions.