The home office ships merchandise to its branch above cost. What journal entry should the home office make to record the transfer of merchandise?* A. (Dr) Investment in Branch (Cr) Shipment to Branch B. (Dr) Shipment to Branch (Cr) Investment in Branch C. (Dr) Investment in Branch (Cr) Shipment to Branch (Cr) Allowance for overvaluation of inventory D. (Dr) Shipment from home office (Cr) Home office
The home office ships merchandise to its branch above cost. What journal entry should the home office make to record the transfer of merchandise?* A. (Dr) Investment in Branch (Cr) Shipment to Branch B. (Dr) Shipment to Branch (Cr) Investment in Branch C. (Dr) Investment in Branch (Cr) Shipment to Branch (Cr) Allowance for overvaluation of inventory D. (Dr) Shipment from home office (Cr) Home office
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 13MC: Which of the following accounts are used when recording the sales entry of a sale on credit? A....
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- The home office ships merchandise to its branch above cost. What
journal entry should the home office make to record the transfer of merchandise?*
A. (Dr) Investment in Branch (Cr) Shipment to Branch
B. (Dr) Shipment to Branch (Cr) Investment in Branch
C. (Dr) Investment in Branch (Cr) Shipment to Branch (Cr) Allowance for overvaluation of inventory
D. (Dr) Shipment from home office (Cr) Home office
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