What Would Be the Journal Entry to Eliminate Any Unrealized

question 56

Multiple Choice

What would be the journal entry to eliminate any unrealized profits from the consolidated financial statements during the year?

• A)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Cost of Goods Sold } & \$ 1,400 & \\
• \hline \text { Inventory } & & \$ 1,400 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Sales } & \$ 15,000 & \\
• \hline \text { Cost of Goods Sold } & & \$ 15,000 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Sales } & \$ 15,000 & \\
• \hline \text { Cost of Goods Sold } & & \$ 12,000 \\
• \hline \text { Inentory } & & \$ 3,000 \\
• \hline
• \end{array}\]

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Definitions:

Edematous

Describing tissue that is swollen due to the accumulation of excess fluid in the body’s tissues.

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A fluid-filled sac surrounding a testicle that causes swelling in the scrotum, common in newborns.

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A condition where tissue, such as part of the intestine, protrudes through a weakened spot in the abdominal muscles near the groin area.

Strabismus

A condition where the eyes do not properly align with each other when looking at an object, commonly known as crossed eyes.