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  3. parent made a sale to sub for 400 sr cash. the inv

Parent made a sale to Sub for 400 SR cash. The inventory had originally cost...

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Accounting

Parent made a sale to Sub for 400 SR cash. The inventory had originally cost Parent 300 SR. Sub has not yet sold that same inventory to an outsider: What is the elimination entry for that transaction?

a. Dr. Sales 400, Cr. Cost of goods sold 300, Cr. profit 100.

b.Dr. Sales 400, Cr. Cost of goods sold 400.

c. Dr. Cost of goods sold 400, Cr. Sales400.

d. Dr. Sales 400, Cr. Cost of goods sold 300, Cr. Inventory 100.

Direct Exchange Rate is O a. The number of local currency units (LCUs) needed to acquire one foreign currency. O b. Used as spot rate. O c. Used as forward rate. d. The number of foreign currency units needed to acquire one local currency.

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