Mitsubishi Trading Co. operates a branch in Dagupan City. At close of business on December 31, 2008, Dagupan Branch account in the home office books showed a debit balance of P225,770. The interoffice. accounts were in agreement at the beginning of the year. For purposes of reconciling the interoffice accounts, the following facts were ascertained: a. An office equipment costing the home office P3,500 was taken up by the branch as P350. b. Insurance premium of P675 charged by the home office was taken up twice by the branch. c. Freight charge on merchandise made by the home office amounting to P1,125 was recorded in the branch. books as P1,215. d. Home Office credit memo representing a discount on merchandise for P800 was not recorded by the branch. e. The branch failed to take up a P700 debit note from the home office representing the share of the branch in advertising. f. The home office inadvertently recorded a P3,000 remittance from its Dagupan Branch as a remittance from the Cebu Branch.

Mitsubishi Trading Co. operates a branch in Dagupan City. At close of business on December 31, 2008, Dagupan Branch account in the home office books showed a debit balance of P225,770. The interoffice. accounts were in agreement at the beginning of the year. For purposes of reconciling the interoffice accounts, the following facts were ascertained: a. An office equipment costing the home office P3,500 was taken up by the branch as P350. b. Insurance premium of P675 charged by the home office was taken up twice by the branch. c. Freight charge on merchandise made by the home office amounting to P1,125 was recorded in the branch. books as P1,215. d. Home Office credit memo representing a discount on merchandise for P800 was not recorded by the branch. e. The branch failed to take up a P700 debit note from the home office representing the share of the branch in advertising. f. The home office inadvertently recorded a P3,000 remittance from its Dagupan Branch as a remittance from the Cebu Branch.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter9: Receivables

Section: Chapter Questions

Problem 5CP

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