On October 1st 2020 Froto sold some merchandise (inventory) to Bilbo company for $1,000,000 credit the inventory had cost Bilbo $600,000. Both Bilbo and Froto use the perpetual inventory method

During 2020 Bilbo had sold 70% of the merchandise acquired from Froto for $750,000 but had not paid off Froto

During 2021 Bilbo sold the remaining merchandise for $325,000 and paid off Froto

In 2020 Froto (unconsolidated) reported income of $1,000,000 and Bilbo reported income of $40,000

In 2021 Froto (unconsolidated) reported income of $1,200,000 and Bilbo reported income of $77,000

REQUIRED:

c) make any necessary worksheet entries in 2020

d) determine consolidated income for 2020

e) make any necessary worksheet entries in 2021

f) make any necessary worksheet entries in 2021

g) determine consolidated income for 2021