The Home Office had two branches, Cebu and Davao. At the end of the year, December 31, 2022, the reciprocal account in Cebu Branch was P256,600. However, there were transactions discovered to have errors. • The home office shipped merchandise costing P87,000 to Cebu branch, but was record by the branch in the amount of P78,000. • Cebu collected Davao's customer accounts worth P25,000, but Davao charged its reciprocal account in the amount of P52,000 and the home office recorded the correct transaction. How much is the adjusted balance of the reciprocal accounts? A. 247,600 B. 238,600 C. 220,600 D. 265,600
The Home Office had two branches, Cebu and Davao. At the end of the year, December 31, 2022, the reciprocal account in Cebu Branch was P256,600. However, there were transactions discovered to have errors. • The home office shipped merchandise costing P87,000 to Cebu branch, but was record by the branch in the amount of P78,000. • Cebu collected Davao's customer accounts worth P25,000, but Davao charged its reciprocal account in the amount of P52,000 and the home office recorded the correct transaction. How much is the adjusted balance of the reciprocal accounts? A. 247,600 B. 238,600 C. 220,600 D. 265,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Home Office had two branches, Cebu and Davao. At the end of the year, December 31, 2022, the reciprocal account in Cebu Branch was P256,600. However, there were transactions discovered to have errors.
• The home office shipped merchandise costing P87,000 to Cebu branch, but was record by the branch in the amount of P78,000.
• Cebu collected Davao's customer accounts worth P25,000, but Davao charged its reciprocal account in the amount of P52,000 and the home office recorded the correct transaction.
How much is the adjusted balance of the reciprocal accounts?
A. 247,600 B. 238,600 C. 220,600 D. 265,600
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