AVC Corporation has one branch office, named JME Branch. AVC is performing the end the period reconciliation. The following items are unsettled at the end of the accounting period you may assume that the item has been reflected in the accounts of the underlined entity): AVC has agreed to remove P750 of excess freight charges charged to JME when AVC shipped twice as much inventory as JME requested; JME mailed a check for P11,000 to AVC as a payment for merchandise shipped from AVC to JME. AVC has not yet received the check; JME returned defective merchandise to AVC. The merchandise was billed to JME at P4,000 when its actual cost was P3,000; Advertising expenses attributable to the branch office was paid for by the home office in the amount of P5,000. Which of the following statements is correct? Question 15Answer JME Branch account on AVC's books is increased for the P11,000 of cash in transit and is decreased for the P5,000 of allocated advertising costs. The JME Branch account on AVC's books is decreased for the P11,000 of cash in transit and is decreased for the P750 of excess freight charges. The JME Branch account on AVC's books is