COMPLETE SOLUTION...

Questions 3 and 4 are based on the following information. The following information is extracted from the books and records of Elaine Company and its branch. The balances are at December 31. 2012 of the combanv's oderations. However, no shipments in transit between home office and the branch were made. Both shipments accounts are properly recorded. The ending inventory includes merchandise acquired from the home office in the amount of P26,000 and P7,800 acquired from outsiders acquired from the home office in the amount of P26,000 and P,800 acquired from outsiders for a total of P33,800. 4. What is the amount of branch merchandise beginning inventory that was acquired from the home office? a. P14,000 c. P15,600 b. P19,000 d. P20,800