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B- The home office of Farah Company ships merchandise to the Nour branch at a billed price that includes a markup 25% on the billed

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B- The home office of Farah Company ships merchandise to the Nour branch at a billed price that includes a markup 25% on the billed price. The inventories ledger account of the branch, showed a December 31, 2019 debit balance $120,000 a debit for a shipment received January 16, 2020 $500,000 . total credits for goods sold during January 2020 $520,000 and January 31, 2020 debit balance $100,000 (all amounts are home office billed price). On January 31, 2020, Nour branch prepared an income statement indicating a net loss of $ 90,000 Required: 1. Prepare a working paper for the home office to analyze the flow of merchandise to Nour branch during January 2020. 2. Reconstruct a three column ledger account Allowance for overvaluation of inventories: Nour branch 3. Prepare journal entries for the home office of Farah Company on January 31, 2020. (10.8marks) C-If the reciprocal ledger account balances of Youssef Company's branch and home office are not in agreement at year-end, What factors might have caused this? Give examples. (2.8 Marks) (END OF QUESTION B- The home office of Farah Company ships merchandise to the Nour branch at a billed price that includes a markup 25% on the billed price. The inventories ledger account of the branch, showed a December 31, 2019 debit balance $120,000 a debit for a shipment received January 16, 2020 $500,000 . total credits for goods sold during January 2020 $520,000 and January 31, 2020 debit balance $100,000 (all amounts are home office billed price). On January 31, 2020, Nour branch prepared an income statement indicating a net loss of $ 90,000 Required: 1. Prepare a working paper for the home office to analyze the flow of merchandise to Nour branch during January 2020. 2. Reconstruct a three column ledger account Allowance for overvaluation of inventories: Nour branch 3. Prepare journal entries for the home office of Farah Company on January 31, 2020. (10.8marks) C-If the reciprocal ledger account balances of Youssef Company's branch and home office are not in agreement at year-end, What factors might have caused this? Give examples. (2.8 Marks) (END OF

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