Over the next two years, William continued selling inventory to Roberts. Assume that any items in intercompany inventory at the end of a given year were sold to outside parties in the following year. Below are the details of the intercompany inventory sales:
|
Year |
Intercompany sales |
Intercompany ending inventory at transfer price |
Gross profit rate on intercompany inventory transfers |
|
2009 |
$125,000 |
$80,000 |
25% |
|
2010 |
$220,000 |
$125,000 |
28% |
|
2011 |
$300,000 |
$160,000 |
25% |
What would be the journal entries and elimination entries?