Intercompany Inventory Elimination Entries (FAR exam) | Universal CPA Review

Start a free trial, no credit card required, using the link below! https://app.universalcpareview.com/ac... This video walks through the 3 steps involved in intercompany inventory eliminating worksheet journal entries. Remember, there are 3 scenarios that they can ask on the CPA Exam: 1) None of the inventory is sold 2) All of the inventory is sold 3) Some of the inventory is sold We also need to ask ourselves, what is getting eliminated (reversed) in the worksheet journal entry. When it comes to intracompany inventory eliminations the amount that we are focused on is the gross profit amount while the reversing accounts we are focused on are inventory and cost of goods sold. If you're more of a visual learner, try Universal CPA Review for free today! Email: [email protected] Website: www.universalcpareview.com