What the overstatement in the branch inventory at december

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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

Reference no: EM132671425

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