Chase Incorporated sold $260,000 of its inventory to Bartlett Company during 2021 for $400,000. Bartlett sold $300,000 of this merchandise in 2021 with the remainder to be disposed of during 2022. Assume Chase owns 35% of Bartlett and accounts for its investment using the equity method.What journal entry will be recorded in 2022 to recognize its share of the intra-entity gross profit that was deferred in 2021?

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The Answer of Chase Incorporated sold $260,000 of its inventory to Bartlett Company during 2021 for $400,000. Bartlett sold $300,000 of this merchandise in 2021 with the remainder to be disposed of during 2022. Assume Chase owns 35% of Bartlett and accounts for its investment using the equity method.What journal entry will be recorded in 2022 to recognize its share of the intra-entity gross profit that was deferred in 2021?

Chase Incorporated Sold $260,000 of Its Inventory to Bartlett Company