The purpose of consolidation entry *G is Multiple Choice to recognize the previous year(s) deferral of gross profit regardless if the inventory is still on hand. to reduce P/L for the previous year(s) deferral of gross profit as the inventory has now been used or sold to an outside third party. to recognize the previous year(s) deferral of gross profit as the inventory has now been used or sold to an outside third party. to record the current year's deferral of gross profit.