On December 7, 2020, the home office of HOBA Company recorded a shipment of merchandise to...

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On December 7, 2020, the home office of HOBA Company recorded a shipment of merchandise to its Tarlac Branch as follows: Tarlac Branch 30,000 Shipments to branch 25,000 Unrealized profit - branch inventory 4,000 Cash (freight charge) 1,000 The Tarlac branch sells 40% of the merchandise to outside entities during the month of December 2020. On January 2, 2021, Tarlac branch transfers half of the original shipment to Aurora branch and Tarlac branch pays P500 as shipment. The freight cost of the merchandise from the home office to Aurora branch would have been P600. On December 7, 2020, the home office of HOBA Company recorded a shipment of merchandise to its Tarlac Branch as follows: Tarlac Branch 30,000 Shipments to branch 25,000 Unrealized profit - branch inventory 4,000 Cash (freight charge) 1,000 The Tarlac branch sells 40% of the merchandise to outside entities during the month of December 2020. On January 2, 2021, Tarlac branch transfers half of the original shipment to Aurora branch and Tarlac branch pays P500 as shipment. The freight cost of the merchandise from the home office to Aurora branch would have been P600.