On September 8^th, 2019 Max, Inc. bought inventory from Dan co. for $100,000 cash that had a cost of $300,000. Max, Inc. subsequently sold all that inventory to an unrelated third party during the year at a sales price of $700,000. Max, Inc. and Dan Co. 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 sales account would be:

Question 3 options:

a)

Credit to Sales of $500,000

b)

Credit to Sales of $100,000

c)

Debit to Sales of $100,000

d)

Debit to Sales of $500,000