Reference no: EM132671425
The Petite Branch of Dainty Company submitted trial balance as of December 31, 20x4, after first year of operations
Accounts Debit Credit
Cash P10,400
Accounts receivable 63,200
Shipments from HO 168,000
Expenses 10,800
Sales P134,400
Home office current 118,000
Totals P252,400 P252,400
Merchandise inventory, P50,400
Shipments to the branch are billed at 140% of cost
Problem 1: The overstatement in the Branch inventory at December 31, 20x4 was
a. P 0 b. P6,000 c. P14,400 d. P33,600
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