Solve

On 1 June 2018, a parent entity Instagrom Ltd sold inventory to its subsidiary entity Facediary Ltd for $80,000. The profit on sale was $ 10,000. By 30 June 2018, 30% of the inventory had been sold to customers outside the group for $25,000. The remaining inventory was sold during the year ending 30 June 2019. What consolidation adjusting entries, if any, would be required on 30 June 2020 for this intra-group transaction? Dr Sales $80,000; Cr COGS $66,000; Cr Inventory $14,000 Dr Retained earnings $7,000; Cr COGS $7,000 O Dr Sales $80,000; Cr COGS $73,000; Cr Inventory $7,000 No consolidation entries are required