CASE 1 Questions

1. Upon the receipt of shipment by Kapitan branch, freight in is debited in the amount of?

Select one:

1. P4,000
2. P2,125
3. P1,000
4. P1,875

2. How much is the excess freight cost to be credited in the books of Home Office?

Select one:

1. P0
2. P2,750
3. P1,000
4. P2,000

CASE 2 Questions

1. Upon the receipt of shipment by CYA branch, how much cash was credited in its book for the freight payment?

Select one:

1. P2,050
2. P0
3. P3,250
4. P3,750

2. How much is to be debited as CYA branch current in the books of the Home Office?

Select one:

1. P32,500
2. P35,250
3. P36,250
4. P37,800

CASE 1 Ronald Company maintains branches that market the products it produces. Merchandise is billed to the branches at cost, with the branches paying the freight charges from the Home Office to the branch. On May 27, Alamid branch shipped a portion of its merchandise to Kapitan branch upon authorization by the Home Office. Originally, Alamid branch had been billed for this merchandise at P25,000 and paid freight charges of P3,125 on the shipments from Home Office. Kapitan Branch, upon receiving the merchandise, pays freight charges of P1,875 on the shipment from Alamid branch. If the shipment had been made from Home Office directly Kapitan branch, the freight cost to Kapitan branch would have been P4,000. CASE 2 Batangas Company maintains branches that market the products it produces. Merchandise is billed to the branches and the freight charges were paid by the shipper. On June 5, 2020, Lingkod-branch shipped a portion of its merchandise to CYA-branch upon authorization by Home Office. Originally, Lingkod-branch had been billed for this merchandise at P32,500. The freight charges of shipment from Home Office amounted to P3,250. On the other hand, the inter branch freight charge amounted to P2,050. If the shipment has been made from Home Office directly CYA branch, the freight cost to CYA branch would have been P3,750