REFERENCE: Ref.05_04
Walsh Company sells inventory to its subsidiary,Fisher Company,at a profit during 2009.Walsh uses the equity method to account for its investment in Fisher.
-With regard to the intercompany sale,which of the following choices would be a debit entry in the consolidated worksheet for 2009?

Question

Quizplus · Accepted Answer

The intercompany sale between Walsh and Fisher would result in an elimination entry in the consolidated worksheet, which would include a debit to cost of goods sold to eliminate the profit on the sale.

REFERENCE: Ref.05_04 Walsh Company Sells Inventory to Its Subsidiary,Fisher Company,at a Profit