During the Current Year, a Parent Sold $800,000 in Merchandise

During the current year, a parent sold $800,000 in merchandise to its subsidiary and reported a gross margin of $100,000 on these sales. The subsidiary still has merchandise purchased from the parent in its ending inventory, reported by the subsidiary at $75,000, on which the parent recorded $15,000 of profit for the current year. Which statement is true concerning the net effect of eliminating entries (I) related to this information?

A) Sales revenue is debited for $700,000
B) Cost of goods sold is credited for $785,000
C) Ending inventory is credited for $75,000
D) Sales revenue is debited for $60,000