1. Strickland Company sells inventory to its parent, Carter Company, at a profit during 2020. Carter sells one-third of the inventory in 2020.

In the consolidation worksheet for 2020, which of the following accounts would be credited to eliminate the intra-entity transfer of inventory?a. Investment in Strickland Company.

b. Cost of goods sold.

c. Sales.

d. Inventory.

e. Retained earnings.

2. Strickland Company sells inventory to its parent, Carter Company, at a profit during 2020. Carter sells one-third of the inventory in 2020.

In the consolidation worksheet for 2020, which of the following accounts would be debited to eliminate unrecognized intra-entity gross profit with regard to the 2020 intra-entity transfers?

a. Cost of goods sold.

b. Retained earnings.

c. Investment in Strickland Company.

d. Inventory.

e. Sales.

3. Strickland Company sells inventory to its parent, Carter Company, at a profit during 2020. Carter sells one-third of the inventory in 2020.

In the consolidation worksheet for 2020, which of the following accounts would be debited to eliminate unrecognized intra-entity gross profit with regard to the 2020 intra-entity transfers?

a. Retained earnings.

b. Inventory.

c. Cost of goods sold.

d. Investment in Strickland Company.

e. Sales.