A Subsidiary Sold Goods to Its Parent Company $$\begin{array} { | l | c | } \hline \text { DR Sales } & 15,000 \\\hline \text { CR Inventory } & 15,000 \\\hline\end{array}$$

question 28

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?

• A) \[\begin{array} { | l | c | }
• \hline \text { DR Sales } & 15,000 \\
• \hline \text { CR Inventory } & 15,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | c | }
• \hline \text { DR Cost of sales } & 15,000 \\
• \hline \text { CR Inventory } & 15,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | c | }
• \hline \text { DR Selling expenses } & 15,000 \\
• \hline \text { CR Inventory } & 15,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | c | }
• \hline \text { DR Inventory } & 15,000 \\
• \hline \text { CR Sales } & 15,000 \\
• \hline
• \end{array}\]

Understand the impact of third-party benefits in contract law, including when an agreement is enforceable by or for the benefit of a third party.

Recognize the role of the amygdala in memory processing.

Identify the brain regions associated with different types of memories.

Comprehend how certain study habits influence memory retention.

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