Swift Corporation operates a number of branches in Metro Manila. On June 30, 2011, its San Lorenzo branch showed a Home Office Current account balance of P27,350 and the Home Office books showed a San Lorenzo branch account balance of P25,550. The following information may help in reconciling both accounts: a. A P12,000 shipment, charged by Home Office to San Lorenzo branch, was actually sent to and retained. by Santo Tomas branch. b. A P15,000 shipment, intended and charged to San Jose branch was shipped to San Lorenzo branch and retained by the latter. d. A P2,000 emergency cash transfer from Santo Tomas branch was not taken up in the Home Office books. Home Office collects a San Lorenzo branch accounts receivable of P3,600 and fails to notify the branch. Home Office was charged for P1,200 for merchandise returned by San Lorenzo branch on June 28. The merchandise is in transit. e.
Swift Corporation operates a number of branches in Metro Manila. On June 30, 2011, its San Lorenzo branch showed a Home Office Current account balance of P27,350 and the Home Office books showed a San Lorenzo branch account balance of P25,550. The following information may help in reconciling both accounts: a. A P12,000 shipment, charged by Home Office to San Lorenzo branch, was actually sent to and retained. by Santo Tomas branch. b. A P15,000 shipment, intended and charged to San Jose branch was shipped to San Lorenzo branch and retained by the latter. d. A P2,000 emergency cash transfer from Santo Tomas branch was not taken up in the Home Office books. Home Office collects a San Lorenzo branch accounts receivable of P3,600 and fails to notify the branch. Home Office was charged for P1,200 for merchandise returned by San Lorenzo branch on June 28. The merchandise is in transit. e.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter9: Receivables
Section: Chapter Questions
Problem 8CP
Related questions
Question
Problem 2 - What is the reconciled amount of the Home Office and San Lorenzo branch reciprocal accounts?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage