Strickland Company Sells Inventory to Its Parent, Carter Company, at a Profit

question 39

Multiple Choice

Strickland Company sells inventory to its parent, Carter Company, at a profit during 2012. One-third of the inventory is sold by Carter in 2012.
In the consolidation worksheet for 2012, which of the following choices would be a credit entry to eliminate unrealized intra-entity gross profit with regard to the 2012 intra-entity sales?

• A) Retained earnings.
• B) Cost of goods sold.
• C) Inventory.
• D) Investment in Strickland Company.
• E) Sales.

Understand how to manage accounts payable through the Pay Bills window.

Grasp the process of recording transactions when sales are made on credit.

Understand the inventory categorization and management for assembly products.

Learn how to process and record vendor credits in QuickBooks.