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?