Selected balances from ABC CO.’s branch A and branch B are:   A Branch B Branch Beginning inventory 1,920 2,100 Petty cash fund 100 200 Ending inventory 1,200 1,900 Accounts receivable, beginning 4,350 5,500 Shipment from home office 4,700 6,100 Accounts receivable, end 5,330 7,000 Cash collections 7,000 8,500 Sales 8,000 10,000 Cash Expenses 1,430 2,100 All sales, collections, and expenses are handled at the branch. All cash received from sales and collections are sent directly to the Home Office. Expenses are pald by the branch from the Imprest fund and immediately reimbursed by the Home Offlice and credited to the Home Office account. All expenses paid by the branch are recorded in the books of the branch. Compute the TOTAL increase or (decrease) for the Home Office account balances on December 31, 2021

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Selected balances from ABC CO.’s branch A and branch B are:

 

A Branch

B Branch

Beginning inventory

1,920

2,100

Petty cash fund

100

200

Ending inventory

1,200

1,900

Accounts receivable, beginning

4,350

5,500

Shipment from home office

4,700

6,100

Accounts receivable, end

5,330

7,000

Cash collections

7,000

8,500

Sales

8,000

10,000

Cash Expenses

1,430

2,100

All sales, collections, and expenses are handled at the branch. All cash received from sales and collections are sent directly to the Home Office. Expenses are pald by the branch from the Imprest fund and immediately reimbursed by the Home Offlice and credited to the Home Office account. All expenses paid by the branch are recorded in the books of the branch.

Compute the TOTAL increase or (decrease) for the Home Office account balances on December 31, 2021.

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