Tribbs sold one of its products to Quicker for resale to its customers. The details include the following:
Tribbs' sale price was $300,000.
Tribbs' cost to make the product was $180,000.
Quicker has sold 50% of the product to its customers during the year with the remaining $100,000 still in inventory.
Quicker sold the product for $130,000.
Quicker made $110,000 in profits for the year.
Submit a report outlining your findings for your next combined meeting. Include the following:
To record the transaction:
Consolidated worksheet entry at 12/31/05
Intercompany sales entry
Intercompany profits entry
DR = Debit
CR = Credit
DR: Accounts receivable 300,000
CR: Sales revenue 300,000
DR: Cost of goods sold 180,000
CR: Inventory 180,000
*I think there is an error here. 50% of 300,000 is 150,000 and ...
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