P company owns 80% of S company .

1- P Company owns 80% of S Company. S Company sells merchandise to P Company at 35% above cost. During 2020 such sales amounted to $600,000. At the end of each year, P Company had sold 1/3 of inventory purchased from S to third parties. Required: Prepare the journal entries for P and S. In addition, the workpaper entries necessary to eliminate the effects of the intercompany sales for 2020