Leveau, Inc. and Gillis Co. are related companies subject to consolidation. On 11/15/2X, Leveau, Inc. bought inventory from Gillis Co. for $200,000 cash that had a cost of $30,000. Leveau, Inc. subsequently sold all that inventory to an unrelated third party during the year at a sales price of $300,000. The portion of the elimination entry at the time of consolidation to account for any required adjustment to the sales account would be:

Question 2 options:

a)

Debit to Sales of $200,000

b)

Credit to Sales of $200,000

c)

Debit to Sales of $100,000

d)

Credit to Sales of $100,000