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When do you use intercompany accounts?
To record transactions between related companies
Why intercompany transactions are eliminated?
If you dont' eliminate intercompany transactions it "grosses up" the income statement. So if you sold inventory in an intercomany transaction and then sold it to a third party you would count (most) of the sales revenue twice and (most) fo the COGS twice. By eliminating the transactions only the ultimate sales price and the entire groups COGS are reflected on the P&L. Similar analysis applies to other transactions.
If two separate companies have the same owner can there be an intercompany account between the two?
Yes you will have intercompany entries as they are separate legal entities
How do you record a journal entry for consignment sales?
debit consignment accountcredit consignment sales
What is a sales returns day book?
Sales returns day book only record the sales returns in any day and no other entry is recorded in it.
When do you use intercompany accounts?
To record transactions between related companies
Ti record sales?
Ti record sales for paper trail.
Why intercompany transactions are eliminated?
If you dont' eliminate intercompany transactions it "grosses up" the income statement. So if you sold inventory in an intercomany transaction and then sold it to a third party you would count (most) of the sales revenue twice and (most) fo the COGS twice. By eliminating the transactions only the ultimate sales price and the entire groups COGS are reflected on the P&L. Similar analysis applies to other transactions.
What is the definition of intercompany?
The definition of intercompany is a number of individuals assembled or associated together. It can also mean an assemblage of people for social purposes.
If two separate companies have the same owner can there be an intercompany account between the two?
Yes you will have intercompany entries as they are separate legal entities
Accounting adjustments for inter company trading?
When intercompany trading occurs, accounting adjustments need to be made to ensure accurate reporting. This typically involves eliminating intercompany sales and purchases, as well as any related profits or losses. Adjustments are made to the respective entities' financial statements to show the appropriate internal transfer of assets, liabilities, revenues, and expenses. This is done to avoid double-counting or misrepresentation of the financial position and results of the entities involved in the intercompany transactions.
What is the total worldwide record sales of Elvis Presley?
his total worldwide record sales is 1.5 billion
What are the values of a record?
Sales
Metallica record sales?
Metallica is an American metal band. They have made lots of record sales. Their self titled album has just hit 16 million sales.
What is definition of a sales job?
sales are the amount of products sold and the job is to record all sales
What are R. Kelly's total record sales?
the total number of record sales to date are 35 million
What is the use of a sales journal?
A sales journal is used to record all sales transactions made by a company. It helps track sales revenue, monitor the performance of salespeople, and provide a detailed record for financial reporting and analysis.
