A Subsidiary Sold Goods to Its Parent Company

question 13

Multiple Choice

A subsidiary sold goods to its parent company.At its year-end,the parent company still had some of the goods in inventory.Included in the value of these inventories is $15,000 of unrealized profits.What journal entry should be made to eliminate these unrealized profits?

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Definitions:

Memory

The faculty by which the mind stores and remembers information.

Prepare

The act of making ready or being made ready for use or consideration; involves planning and setting up necessary resources.

Benefits

Advantages or positive outcomes provided by a job, action, or decision, often including material perks like healthcare or retirement plans.

Examples

Specific cases or instances used to illustrate a fact, situation, or principle.