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Wathan Inc

question 90

Essay

Wathan Inc.sold $180,000 in inventory to Miller Co.during 2017, for $270,000.Miller resold $108,000 of this merchandise in 2017 with the remainder to be disposed of during 2018.
Required:
Assuming Wathan owns 25% of Miller and applies the equity method, prepare the journal entry Wathan should have recorded at the end of 2017 to defer gross profit on intra-entity inventory sales.


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