Business, 29.02.2020 06:03 ruchierosanp1n3qw

1. For intercompany merchandise sales, how do the consolidation eliminating entries differ between upstream and downstream sales? A. Sales revenue from upstream sales are eliminated but sales revenue from downstream sales are not. B. Confirmed intercompany profit on downstream beginning inventory is debited to investment in subsidiary, while it is debited to beginning retained earnings for upstream beginning inventory. C. The difference between intercompany profit on ending inventory and beginning inventory is an adjustment to investment in subsidiary for downstream sales but it is an adjustment to retained earnings for upstream sales. D. Unconfirmed intercompany profit on upstream ending inventory is debited to beginning retained earnings, while it is debited to investment in subsidiary for downstream sales.

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