The Journal Entries to Eliminate Unrealised Profit in Closing Inventory

question 40

Multiple Choice

The journal entries to eliminate unrealised profit in closing inventory at 30 June 2007 were as follows.

What are the journal entries to eliminate the unrealised profits in opening inventory the following period?

---

Definitions:

High School Diploma

A certificate awarded by schools in many countries upon successful completion of secondary education.

Affirmative Action

Policies and measures designed to increase opportunities for underrepresented groups in areas such as education and employment, aiming to correct inequalities.

Franchise

Any arrangement in which the owner of a trademark, trade name, or copyright licenses another to use that trademark, trade name, or copyright in the selling of goods or services.

Separate Business Organization

An entity formed to engage in commercial, industrial, or professional activities, distinct and legally independent from its owners.