Using the Same Data as for Question 9,what Would Be $\begin{array} { l l } \text { Dr. Sales } & \$ 20,000 \\\text { Cr. Cost of Sales } & \$ 20,000\end{array}$

Multiple Choice

Using the same data as for Question 9,what would be the consolidation entry required for the next financial year (assuming S sold all the inventory during the next year) ?

A) $\begin{array} { l l } \text { Dr. Sales } & \$ 20,000 \\\text { Cr. Cost of Sales } & \$ 20,000\end{array}$
B) Dr. Opening Retained Earnings $\quad\$ 20,000$
Cr. Cost of Goods Sold $\quad\quad \$ 20,000$
C) as for $B$ plus
Dr. Income Tax Expense $\$ 6000$
Cr. Retained Earnings $\quad \$ 6000$
D) None of the above