S1: An expense item allocated by the home office to a branch is recorded by the branch by a debit to an expense ledger account and a credit cash-home office. S2: A debit to Home Office ledger account and a credit to the Trade Accounts Receivable account in the accounting records of a branch indicate that the home office collected accounts receivable of the branch. A. Only S1 is correct. B. Both statements are incorrect. C. Only S2 is correct. D. Both statements are correct.

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S1: An expense item allocated by the home office to a branch is recorded by the
branch by a debit to an expense ledger account and a credit cash-home office.
S2: A debit to Home Office ledger account and a credit to the Trade Accounts
Receivable account in the accounting records of a branch indicate that the home
office collected accounts receivable of the branch.

A. Only S1 is correct.
B. Both statements are incorrect.
C. Only S2 is correct.
D. Both statements are correct.

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