1. Business
2. Accounting
3. Financial Accounting & Bookkeeping
4. The Accounting Cycle
5. 520723

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I need help understanding how these work. If one division sells another division 50 pc of equipment and records postage and depreciation on the items, how does the receiving division record the entry? I don't think they would be concerned with postage and depreciation on the receiving end - just a straight receipt, correct?

For example:

shipping entry:

Item 1000 - 3000
postage 50
depreciation 650
rec co. 2300

receiving entry: ???

I think

shipping co 2300
item 1000 2300