The home office of Gomez Company bills its only branch at a markup of 25% above home office cost for all merchandise shipped to that Perez Branch. Both the home office and the branch use the periodic inventory system. During 2005, the home office shipped merchandise to the branch at a billed price of $30,000. Perez Branch inventories for 2005 were as follows:

Jan. 1 Dec. 31 Purchased from home office (at billed price) 15,000 19,500 Purchased from outsiders 6,800 8,670 Prepare journal entries (including adjusting entry) for the home office of Gomez Company for 2005 to reflect the foregoing information.