Walsh Company sells inventory to its subsidiary, Fisher Company, at a profit during 2012. One-third of the inventory is sold by Fisher in 2012. Walsh does not use the equity method to account for its investment in Fisher. In the consolidation worksheet for 2013, which of the following choices would be a debit entry to recognize gross profit in the current period that was previously unrealized in the intra-entity transfer of inventory?

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Inventory.

Investment in Fisher Company.

Sales.

Cost of goods sold.

Retained earnings.