Replies posted by Wallace

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C
Do Gooder (Customer)
ChrisTinDo Gooder (Customer)
asked in Finance (Financials)

Intercompany AR/AP - Out of Balance Fixes Needed

I have a few questions. I appreciate any input.Intercompany AR/AP/Inc/Exp is eliminated at the parent company consolidation level. Subsidiaries maintain their own sets of books. At the subsidiary level intercompany AR/AP/Inc/Exp should exist on the financial statements, correct? (Sub FS)They are later eliminated when consolidating by the parent. (Parent consolidated FS)Let's say the sub has an AR balance with both the parent and laterally with another sub. They learn they will only receive reimbursement of 50% from each intercompany AR. What is the JE to record the reduction of AR balances(write off/net asset transfer) on the Sub FS?

5
C
Do Gooder (Customer)
2 years ago

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