The home office ships merchandise to the branch at 50 percent above cost. On its books the branch shows a beginning inventory of home office merchandise amounting to 15,000 and shipments from home office of 110,000. Its ending inventory of home office merchandise is 5,000. What amount should the home office adjust the allowance for overvaluation of branch inventory account?

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Q: The home office ships merchandise to the branch at 50 percent above cost. On its books the branch…

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A:

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A:

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A:

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A:

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A: a.

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