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ROLAND company maintains branches that market the products it produces. Merchandise is billed to the branches at cost, with the branches paying the freight charges from the Home office to the branch. On May 27, LANDERZ-branch ships a portion of its merchandise to ROBINSON-branch upon authorization by Home Office. ROBINSON-branch, upon receiving the merchandise, pays freight charges of P1,875 on the shipment from LANDERZ-branch. If the shipment had been made from the Home office directly to ROBINSON-branch, the freight cost to ROBINSON-branch would have been P4,000.
Problem 1: How much is the excess freight cost to be credited in the books of Home Office?
Problem 2: How much is the ROBINSON-branch current in the books of the Home Office?
Problem 3: Upon receipt of shipment by ROBINSON-branch, freight in is debited in the amount of?
Problem 4: Home office current is debited by LANDERZ-branch by how much?
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