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:

Confusion

A state of perplexity or uncertainty due to difficulty in understanding something or making a decision.

Unfamiliar Culture

A culture that an individual has not been exposed to, leading to potential lack of understanding or knowledge about its practices and norms.

Ethnocentrism

The tendency to believe that one's own culture or ethnic group is superior to others, which can lead to biased judgments and interactions with people from different backgrounds.

Cultural Preference

Refers to the predispositions and choices influenced by an individual's cultural background, affecting various aspects of behavior and decision-making.