FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Journalize the transaction in the books of Home Office, Branch 1, and Branch 2.

The home office sent merchandise costing P300,000 to Branch 1 at a gross profit of
20%. Freight on shipment paid by the home office is 2% of the billed price. After
two days, Branch 2 encountered inventory shortage and the Branch 1 was
instructed to shipped to Branch 2 the 60% of the inventory sent by the home office.
Shipment to Branch 2 resulted to a transportation cost of P5,000 paid by Branch 1.
The freight if the shipment will come directly from home office to Branch 2 is
P8,000. The freight cost is assumed to be incurred on per unit basis.
Journalized the transaction in the books of Home Office, Branch 1, and Branch 2.
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Transcribed Image Text:The home office sent merchandise costing P300,000 to Branch 1 at a gross profit of 20%. Freight on shipment paid by the home office is 2% of the billed price. After two days, Branch 2 encountered inventory shortage and the Branch 1 was instructed to shipped to Branch 2 the 60% of the inventory sent by the home office. Shipment to Branch 2 resulted to a transportation cost of P5,000 paid by Branch 1. The freight if the shipment will come directly from home office to Branch 2 is P8,000. The freight cost is assumed to be incurred on per unit basis. Journalized the transaction in the books of Home Office, Branch 1, and Branch 2.
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