Makati Co. bills its Valenzuela branch for merchandise at 140% of cost. At the end 2020, the branch reported the following information: Merchandise from Home Ofic (at billed price) ry, January 1 7,560 nts received ry, January 31 28,280 8,400 hould be the balance of the allowance account for overvaluation of the branch inve ary 31?
Makati Co. bills its Valenzuela branch for merchandise at 140% of cost. At the end 2020, the branch reported the following information: Merchandise from Home Ofic (at billed price) ry, January 1 7,560 nts received ry, January 31 28,280 8,400 hould be the balance of the allowance account for overvaluation of the branch inve ary 31?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Makati Co. bills its Valenzuela branch for merchandise at 140% of cost. At the end of
January 2020, the branch reported the following information:
Merchandise from Home Office
(at billed price)
Inventory, January 1
7,560
Shipments received
28,280
Inventory, January 31
8,400
What should be the balance of the allowance account for overvaluation of the branch inventory
at January 31?
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