Question
Swamp Co., a 55%-owned subsidiary of Pond Inc., made the following entry to record a sale of merchandise to Pond: Accounts Receivable 40,000 Sales Revenue
Swamp Co., a 55%-owned subsidiary of Pond Inc., made the following entry to record a sale of merchandise to Pond:
Accounts Receivable 40,000
Sales Revenue 40,000
All Swamp sales are at 125% of cost. One-fourth of this merchandise remained in the Pond's inventory at year-end. A working paper entry to eliminate unrealized profits from consolidated inventory would include a credit to Inventory in the amount of
| A. | $8,000. | |
| B. | $2,000. | |
| C. | $10,000. | |
| D. | $2,000. |
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Financial Accounting Tools For Business Decision Making WileyPLUS NextGen Card Single Semester
Authors: Paul D. Kimmel ,Jerry J. Weygandt ,Donald E. Kieso
10th Edition
1119791022, 978-1119791027
