On January 1, 2XX3, the Subsidiary held merchandise acquire from the Parent for $20,000. During 2XX3, the Parent sold merchandise to the Subsidiary for $40,000, of which the Subsidiary holds $10,000 on December 31, 2XX3. Subsidiary's gross profit on sales is 40%. On December 31, 2XX3, the Subsidiary still owes the Parent $3,000 for merchandise. (Note: The Parent has an 80% controlling interest in the Subsidiary)

1) What are the entries to eliminate intercompany sales and inventories?

2) What are the entries to eliminate intercompany accounts receivable/payable?