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Question: The home office in Mandaluyong shipped merchandise costing P21,690 to Caloocan branch and paid for the freight charges of P3,980. Caloocan branch was subsequently instructed to transfer the merchandise to Manila Branch wherein Manila branch paid for P1,250 freight. If the shipment was made directly from Mandaluyong to Manila, the freight cost would have been P5,500. As a result of the interbranch transfer of merchandise, which of the following statements is wrong?
The Caloocan branch will debit the amount of P25,670 to Home Office Current account
The Home Office will debit excess freight of P270
The Manila branch will credit the amount of P25,940 to Home Office Current account
The Manila branch will debit freight-in amounting to P5,500
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