Question
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...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Advanced Accounting
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
11th edition
538480289, 978-0538480284
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App