40- Walsh Company sells inventory to its subsidiary, Fisher Company, at a profit during 2020. With respect to one-third of the inventory sold to Fisher, Walsh accounts for it using the equity method of accounting.

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

A- Investment in Fisher Company.

B- Sales.

C- Inventory.

D- Cost of goods sold.

E- Retained earnings.