J/E to record intercompany revenue


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We have cash (in the form of credit card purchases made by our customers) received in the parent company bank account but relates to revenue earned by the subsidiary. There were issues and delays with linking the subsidiary bank account to our merchant processor, which is why the cash receipts went to the parent company bank.

Since the revenue was earned by the subsidiary but deposited to the parent bank account, what are the proper intercompany entries to record these transactions?
 
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kirby

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If Parent recorded
Dr Cash
Cr Revenue

then to fix this
Parent just needs to pay Sub
Dr Revenue
Cr Cash (paid to sub)

then Sub can record the sale
Dr Cash (received from Parent)
Cr Revenue
 

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