AZKABAN bills its branch for merchandise shipments 25% of sale. As of cut-offf date, December 31, 2021, the following data were available. Outside supplierShipment form home officeBeginning Inventory120,000300,000Purchases360,000471,000Ending Inventory150,000420,000The branch returned $15,000 merchandise to the home office acquired at billed price. How much is the amount of allowance for overvaluation account that was realized in December?

Step 1 Overvaluation allowance for branch account is adjusted off due to set off the inter branch…

Answered: ZKABAN bills its branch for merchandise…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 7E: Record the following transactions for a perpetual inventory system in general journal form. a. Sold...

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AZKABAN bills its branch for merchandise shipments 25% of sale. As of cut-offf date, December 31, 2021, the following data were available.

	Outside supplier	Shipment form home office
Beginning Inventory	120,000	300,000
Purchases	360,000	471,000
Ending Inventory	150,000	420,000

The branch returned $15,000 merchandise to the home office acquired at billed price. How much is the amount of allowance for overvaluation account that was realized in December?

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