Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

B- Habiba Company has a single branch in Southwest. On March 1, 2020, the home office accounting records included an Allowance for Overvaluation of Inventories:

image text in transcribed
B- Habiba Company has a single branch in Southwest. On March 1, 2020, the home office accounting records included an Allowance for Overvaluation of Inventories: Southwest Branch ledger account with a credit balance of $32,000. During March, the following transactions occurred: 1. On March 4, the home office shipped merchandise costing $66,000 to the Southwest Branch and billed it at a price representing a 25% markup on the billed price. 2- On March 8, the branch sold 70% of the merchandise received from the home office on March 4 for $90,000 cash. 3. On March 15, the branch sold 20% of the merchandise received from the home office on March 4 to Hope company for $30,000 on credit, 4. On March 22, the home office informed the branch that it had collected 50% of the amount owed by Hope company. 5. On March 28, the branch paid operating expenses of $10,000 cash. 6- On March 29, Hope company paid the remaining amount due to Southwest branch. 7. On March 30, the home office allocated operating expenses of $4,000 to the branch Reouired: 1) Prepare a working paper for the home office to analyze the flow of merchandise to Southwest branch during March 2020. B326 FTHE VI Page 3 of 10 Summer 2020 2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 22 - Management Discussion And Analysis

Authors: Kate Mooney

1st Edition

007171944X, 9780071719445

More Books

Students also viewed these Accounting questions