a. Determine the adjustment to the allowance for overvaluation account.b. Compute the consolidated inventory at the end of the year. The Dame Company operates a branch in Cebu City. Operating data for the homeoffice and branch for 2021 follows:Home OfficeSalesPurchases from outsidersShipments to branchbat Expenses pedaInventory, January 1, 2021:Acquired from outsidersFrom home officeInventory, December 31, 2021:Acquired from outsidersFrom home officeP300,000210,00030,00060,000Branch55,000P78,50020,00040,00012,50080,000 7,50024,5005,50026,000Required:1. The adjustment to the allowance for overvaluation account is:to 2. The consolidated inventory at the end of the year is:

Name: a. Determine the adjustment to the allowance for overvaluation account
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Description: a. Determine the adjustment to the allowance for overvaluation account.b. Compute the consolidated inventory at the end of the year. The Dame Company operates a branch in Cebu City. Operating data for the homeoffice and branch for 2021 follows:Home O

Allowance for Overvaluation account is used in branch accounting when goods are invoiced at cost +…

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The Dame Company operates a branch in Cebu City. Operating data for the home office and branch for 2021 follows: Home Office P300,000 210,000 Sales Purchases from outsiders Shipments to branch Expenses Inventory, January 1, 2021: Acquired from outsiders From home office Inventory, December 31, 2021: Acquired from outsiders From home office Required: 30,000 60,000 80,000 55,000 Branch P78,500 20,000 40,000 12,500 7,500 24,500 5,500 26,000 1. The adjustment to the allowance for overvaluation account is: 2. The consolidated inventory at the end of the year is:

The Dame Company operates a branch in Cebu City. Operating data for the home office and branch for 2021 follows: Home Office P300,000 210,000 Sales Purchases from outsiders Shipments to branch Expenses Inventory, January 1, 2021: Acquired from outsiders From home office Inventory, December 31, 2021: Acquired from outsiders From home office Required: 30,000 60,000 80,000 55,000 Branch P78,500 20,000 40,000 12,500 7,500 24,500 5,500 26,000 1. The adjustment to the allowance for overvaluation account is: 2. The consolidated inventory at the end of the year is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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