Exercises (1) On January 31, 2003, the unadjusted credit balance of the allowance for overvaluation of inventories: Vermont avenue branch of the home office of Sea Company was $ 80,000. The branch reported a net income of $ 60,000 for January 2003 and an ending inventory on January 31, 2003, of $ 81,000, at billed prices that included a markup on home office cost of 50%. Instructions: Prepare journal entries (omit explanations) for the home office of sea company on January 31, 2003, for the foregoing facts