The home office of Kurbida Co. ships goods to Davao branch billing the branch for the goods at P45,000, excluding freight of P6,000. Upon receipt of the goods, Davao branch was instructed by the home office to transfer these goods to Cebu branch. Davao branch ships the goods and paid P4,500 for the transfer. If the goods had been shipped by the home office directly to Cebu branch, the freight would have been P6,500.

 

Requirement:

a.    What is the journal entry to record receipt of shipment in the books of Cebu branch?

b.    What is the adjusting journal entry to be recorded by Davao branch?

c.    What is the adjusting journal entry to be recorded by home office?

Answer rating: 100% (QA)

a Journal entry to record receipt of shipment in th... View the full answer