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Problem 1: Vivaldi & Co. has several branches located in key cities in the south namely, Cebu, Mactan, Iloilo, Bacolod, Davao and Cagayan de Oro. It authorizes transfers of cash and inventories among branches. The head office ships goods (P10,000 cost) to Cebu branch paying freight for P600. The home office authorizes the transfer of goods from Cebu branch to Davao branch where the latter is charged for the cost of the goods (P10,000) and freight charge (P200) for the transfer. If the shipment had been made by the home office directly to the Davao branch, the freight charge would have been P900. The transfer resulted to difference in freight charge which should be disposed of which of the following:
A. P100 charge to Davao branch by Cebu branch
B. P100 savings
C. P100 charge to Davao branch by Head Office
D. P100 to be equally charge among head office, Cebu branch and Davao branch
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