Question: 1 . On the 2 0 th June 2 0 2 4 , Penguin Ltd sold inventories costing $ 8 0 , 0 0 0

1. On the 20th June 2024, Penguin Ltd sold inventories costing $80,000 to Gotham Ltd for
$70,000 on credit. At the end of the year, 30% of the goods were still in Gotham Ltds inventory.
Gotham Ltd paid the outstanding balance to Penguin Ltd on 1st August 2024. We have
recognised a loss of $10,000 from the sale which has reduced our taxes. Is there anything else
we need to do? Please provide any necessary journal entries.

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