Reference no: EM132503257

Point 1: Since the date it was acquired by Topp Manufacturing, Bussman has sold inventory on to Topp on a regular basis. The amount of such intercompany sales totaled $279,045 in 20x2 and $493,290 in 20x3, including a 42 percent gross profit. All inventory transfer 20x2 had been sold by December 31, 20x2, except inventory which Topp paid $58,725 did not resell until January 20x3. All 20X2 inventory transactions on account had been satisfied prior the end of the year. Inventory transferred in 20x3 had been resold at December 31, 20x3, except merchandise for which Topp had paid $112,050 An account balance of $63,450 remained unpaid on 20x3 inventory transactions.

Question 1: On the last sentence that it stated about an account balance remained unpaid, is it simply just an accounts payable? if so, is it treated differently since it occurs during intercompany sale.