Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During 2020, the holding Co. sold goods costing $12000 to it's subsidiary at a gross profit of 25%. The subsidiary has $4000 of these

During 2020, the holding Co. sold goods costing $12000 to it's subsidiary at a gross profit of 25%. The subsidiary has $4000 of these goods on hand at 12/31/2020, so the Worksheet entry for unrealized profit in inventory is A Cost of sales debit 1,000 and Inventory credit 1,000 B Cost of sales debit 4,000 and Inventory credit 4,000 C None of the other answers Inventory debit 1,000 and Cost of sales (D) credit 1,000

Step by Step Solution

3.43 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

The correct answer is A The GP Ratio is 25 and the closing inve... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

11th edition

538480289, 978-0538480284

More Books

Students also viewed these Accounting questions