Sketchy Shoe is a subsidiary of Pacific Brands. Pacific routinely sells merchandise to Sketchy at a 25% markup on cost. Information on intercompany merchandise transactions is below (in thousands):

Inventory balance on Sketchy?s books, purchased from Pacific Brands, January 1, 2017,	$6,250
Inventory balance on Sketchy?s books, purchased from Pacific Brands, December 31, 2017,	6,625
Total sales revenue recorded by Pacific Brands on merchandise sales to Sketchy in 2017	250,000

Required:

a. Prepare the working paper eliminating entries related to these intercompany transactions on December 31, 2017.

b. Assume Sketchy sold merchandise acquired from Pacific Brands for $300,000 during 2017. What amounts appear on the separate books of Pacific Brands and Sketchy Shoes, relating to the intercompany merchandise transactions, for sales revenue and cost of goods sold? What are the consolidated sales and cost of goods sold?