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

question 45

Multiple Choice

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 at the end of 2021 to defer the recognition of the investor's share of the intra-entity gross profits?

• A)Entry A.
• B)Entry B.
• C)Entry C.
• D)Entry D.
• E)No entry is necessary.

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Definitions:

Societal History

The examination of past events in relation to human societies, their culture, and development.

Economic Inequality

Economic inequality describes the unequal distribution of income and wealth among individuals or groups within a society.

Wealthy And Influential

Describes individuals or groups who possess significant financial resources and the power to affect decisions, policies, or trends in society.

Conflict Theory

A sociological perspective that views social life as a competition, focusing on the struggles between groups over power or scarce resources.