A parent sells merchandise to its subsidiary at a markup of $20\%$ on cost$.$ In the current year, the subsidiary had $$120,000$ in merchandise purchased from the parent in its beginning inventory. During the current year, the subsidiary purchased $$600,000$ in merchandise from the parent, and sold merchandise purchased from the parent to outside customers for $$900,000.$ At year$-$end, the subsidiary has $$192,000$ in merchandise purchased from the parent in its ending inventory.

How do the consolidation working paper eliminating entries affect cost of goods sold?