During the year Grande Ltd sold goods to Petit Ltd for $450,000. These goods originally cost Grande Ltd $110,000. At year-end, 95% of these goods remained in Petit Ltd's closing inventory. We have recognized profit of $340,000 from the sale which has improved our overall profits and pleased the CEO.

Do we need to do anything else? Do I need further journal entries when preparing the group's accounts? If so, please provide me with the journal entries and explanations for the?

Answer rating: 100% (QA)

Based on the information provided it seems that further journal entries are required to adjust the p... View the full answer