Question
On 1/1/2X, Murtry Co. sold inventory to Mazur, Inc. for $600,000 cash that had a cost of $300,000. Mazur, Inc. subsequently sold half that inventory
On 1/1/2X, Murtry Co. sold inventory to Mazur, Inc. for $600,000 cash that had a cost of $300,000. Mazur, Inc. subsequently sold half that inventory during the year at a sales price of $500,000 to unrelated third parties. Murtry Co. and Mazur, Inc. are related companies subject to consolidation. The portion of the elimination entry at the time of consolidation to account for any required adjustment to the cost of goods sold account would be:
a)
Credit to Cost of Goods Sold of $350,000
b)
Credit to Cost of Goods Sold of $400,000
c)
Credit to Cost of Goods Sold of $450,000
d)
Credit to Cost of Goods Sold of $500,000
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