HO Corp. has one branch office, named ABC Branch. HO is performing the end-of-the-period reconciliation of its ABC Branch account whose current balance is P? and ABCs Home Office account whose current balance is P?. 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):

HO has agreed to remove P600 of excess freight charges charged to ABC when HO shipped twice as much inventory as ABC requested.

ABC mailed a check for P8, 800 to HO as a payment for merchandise shipped from HO to ABC. HO has not yet received the check.

ABC returned defective merchandise to HO. The merchandise was billed to ABC at P32, 000 when its actual cost was P2, 400.

Advertising expense attributable to the ABC office were paid for by the HO in the amount of P4, 000.

If the adjusted balances for the HO Branch Account and the ABC Home Office Account is P400, 000, what unadjusted balance was listed in (1) HOs Branch Account, and (2) ABCs Home Office Account?

(1) 408, 200 and (2) 404, 000

(1) 412, 000 and (2) 396, 600

(1) 411, 200 and (2) 412, 800

(1) 403, 200 and (2) 400, 600