11. On January 31, 2005, East Branch of Lyle Company, which uses the perpetual inven- tory system, prepared the following journal entry: Inventories in Transit Home Office To record shipment of merchandise in transit from home office. 10,000 10,000 When the merchandise is received on February 4, 2005, East Branch should: a. Prepare no journal entry. b. Debit Inventories and credit Home Office, $10,000. c. Debit Home Office and credit Inventories in Transit, $10,000. d. Debit Inventories and credit Inventories in Transit, $10,000.