Question: During 2020, the holding Co. sold goods costing $12000 to it's subsidiary at a gross profit of 25%. The subsidiary has $4000 of these

During 2020, the holding Co. sold goods costing $12000 to it's subsidiary at a gross profit of 25%. The subsidiary has $4000 of these goods on hand at 12/31/2020, so the Worksheet entry for unrealized profit in inventory is A Cost of sales debit 1,000 and Inventory credit 1,000 B Cost of sales debit 4,000 and Inventory credit 4,000 C None of the other answers Inventory debit 1,000 and Cost of sales (D) credit 1,000

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