Pizza Factory Company owns 80% of the common stock of Sugar Company and they use the Cost Method. Pizza Factory sells merchandise to Sugar Company at 20% above cost.

During 2019 and 2020, intercompany sales amounted to:

2019 840,000 At the end of 2019, Sugar Company had one-fifth of the goods purchased that year from Pizza Factory in its ending inventory.

2020 930,000 Sugar Companys 2020 ending inventory contained one-fourth of that years purchases from Pizza Factory.

There were no intercompany sales prior to 2019.

NOTE - YOU DO NOT HAVE TO PREPARE ALL CONSOLIDATED JOURNAL ENTRIES. ONLY THOSE TO DO WITH THE INTERCOMPANY SALES OF INVENTORY

Prepare in general journal form all 2019 consolidating journal entries relating to the intercompany sale. Prepare in general journal form all 2020 consolidating journal entries relating to the intercompany sale.