How should the sale between lawler and ritter

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Problem-

Jones Inc. owned all of the voting common stock of both Ritter Co. and Lawler Co. During 2011, Ritter sold inventory to Lawler. The goods had cost Ritter $65,000, and they were sold to Lawler for $100,000. At the end of 2011, Lawler still held 30% of the inventory.

Required: How should the sale between Lawler and Ritter be accounted for in a consolidation worksheet? Show worksheet entries to support your answer.

Additional information-

The problem belongs to Accounting and it discuss about how a sale should be accounted for in a consolidated worksheet. This has been discussed in the solution detail.

Word limit- 200.

Reference no: EM13824722

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