For consolidation purposes, what amount would be debited to cost of goods sold for the 2017 consolidation worksheet with regard to unrecognized intra-entity gross profit remaining in ending inventory with respect to the transfer of merchandise?
A) $ 300.
B) $ 240.
C) $2,000.
D) $1,600.
E) $ 270.

Question

Quizplus · Accepted Answer

The amount of unrecognized intra-entity gross profit remaining in ending inventory with respect to the transfer of merchandise is $300. This amount should be debited to cost of goods sold in the consolidation worksheet to eliminate the intercompany profit.

For Consolidation Purposes, What Amount Would Be Debited to Cost