Reference no: EM132736835

Problem 1: The following partial transactions took place between the home office and its two branches, Bacolod Branch and Cebu Branch: Upon the instruction of the home office, Cebu Branch affected a fund transfer of P25,000 to Bacolod Branch. Bacolod Branch collected a Cebu Branch's accounts receivable ofP35,000 less 2% discount; Cebu Branch paid P250,000 representing the traveling expenses of Mr. Jay Ayala, a senior Vice-president, when the latter attended the regional conference in Canada. Of the amount paid, 60% was charged to the home office, 25% to Bacolod Branch and the balance to Cebu Branch; Home office shipped merchandise costing P200,000 to Cebu Branch. Freight ofP3,000 was paid by the home office. It is the policy of the company to bill its branches at 25% above cost; Upon the instruction of the home office, Cebu reshipped the above merchandise to Bacolod Branch. Freight of P1,500 was paid by Bacolod Branch. Had the goods been shipped directly to Bacolod Branch, the freight would have been only P4,200. What is the balance of the Home Office account in the books of Bacolod branch?

Select one:

Option 1: P378,700
Option 2: P312,000
Option 3: P374,500
Option 4: P3 70,300