Compute the amount credited to home office current account

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Problem - The home office in Alabang shipped merchandise costing P55,500 to Davao branch and paid the freight amounting to P4,200. The home office transfers merchandise to the branch at a 20% mark-up based on cost. Davao branch was subsequently instructed to transfer the merchandise to Cebu branch wherein the latter paid for P2,800 freight. If the shipment was made directly from Alabang to Cebu, the freight cost would have been P6,200. Compute the amount credited to Home Office Current account in the books of Cebu branch?

Reference no: EM132964531

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