Reference no: EM132608248
Question - On September 1, 2019, Dubai Malls Main Office established three branches: Venice, Malibu and Melbourne branches.
The home office transferred 480,000 worth of cash and 2,100,000 worth of inventory to its Venice branch. The home office transfers merchandise to its branch at a mark-up of 25% above cost.
The home office instructed Venice to transfer 75% of the goods and cash received to Malibu.
In addition, on October 1, 2019, shipments from home office were received by Venice amounting to 750,000 at cost and the branch paid freight costs amounting to 39,000.
60% of the said shipments were sold to outsiders.
On November 1, 2019, Venice transferred 50% of the remaining October shipments from Melbourne to Malibu, with Malibu branch paying freight costs of 15,000.
Had the merchandise been shipped from Melbourne to Malibu branch, only 11,400 worth of freight would have been incurred.
Required - How much is the balance of the Malibu branch account on the Home Office books?