A Consolidation Adjustment Entry Made to Eliminate the Intragroup Sales

question 15

Multiple Choice

A consolidation adjustment entry made to eliminate the intragroup sales of inventory at a profit would take the following form:

• A) DR Cost of Sales, CR Sales, CR Inventory
• B) DR Sales, CR Cost of Sales, CR Inventory
• C) DR Cash, DR Cost of Sales, CR Inventory
• D) DR Inventory, CR Sales, CR Cash.