During Year $8$ and Year $9,$ Sage sold merchandise to Page at a price that provides it with a gross profit of $50\%.$ The Year $9$ sale was $$10,000.$ Page$$s December $31,$ Year $9,$ inventory contained $$2,000.$ The December $31,$ Year $8,$ inventory of Page contained $$1,000.$

Also during Year $9,$ Page sold merchandise to Sage for $$33,600.$ Paige prices its sales based on a $40\%$ markup on cost$.$ At year end, the portion remaining in Sage inventory was $50\%.$

Intercompany sales for the year totalled $$50,000.$

At the end of Year $9,$ Page owed Sage $$500$ for merchandise inventory purchased on account. This liability is non$-$interest bearing.

a$.$ Table of realized and unrealized intercompany inventory profits

b$.$ Adjustment for inter$-$ company sales