On 5 June 2022, a Parent Entity Sold Inventories to a Subsidiary

On 5 June 2022, a parent entity sold inventories to a subsidiary entity for $80 000. The inventories had previously cost the parent entity $72 000. All the inventories are still held by the subsidiary at reporting date, 30 June 2022. Ignoring tax effects, the adjustment entry in the consolidation worksheet at reporting date is:

A) $$\begin{array} { l l l l } \text { Cash } & \mathrm { Dr } & 72,000 & \\\quad \text { Sales reverue } & \mathrm { Cr } & & 72,000 \\\text { Cost of sales } & \mathrm { Dr } & 72,000 & \\\text { Irventories } & \mathrm { Cr } & & 72,000\end{array}$$
B) $$\begin{array} { l l l l } \text { Sales reverule } & \mathrm { Dr } & 72000 \\\text { Cash } & \mathrm { Cr } & & 72000\\\text { Irvertories } & \mathrm { Dr } & 72000 & \\\text { Cost of sales } & \mathrm { Cr } & &72000\end{array}$$
C) $\begin{array}{ccr}\text { Sales revenue } & \mathrm{Dr} \quad 80,000 & \\\text { Cost of sales } & \mathrm{Cr} & 8,000 \\\text { Inventories } & \mathrm{Cr} & 72,000\end{array}$
Inventories
D) $\begin{array}{ccc}\text { Sales revenue } & \mathrm{Dr} \quad 80,000 & \\\text { Cost of sales } & \mathrm{Cr} & 72,000 \\\text { Inventories } & \mathrm{Cr} & 8000\end{array}$