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Problem 1: The following information are extracted from the books and records of Pinoy Company and its branch. The balances are at December 31, 2019 the fourth year of the company's operations. From the records of Branch, Sales P200,000; Shipments from HO 80,000; Purchases 30,000; Expenses 60,000; Inventory, January 1 20,000. Presented from the books of the Home office, Shipments to branch P60,000; Allowance for Overvaluation of branch inventory 24,000. There are no shipments in transit between the home office and the branch. Both shipments accounts are properly recorded. The ending inventory at billed price includes merchandise acquired from the home office in the amount of P20,000 and P6,000 acquired from vendors for a total of P26,000. How much of the branch beginning inventory was acquired from outsiders?
Select one:
Option 1: P 4,000Option 2: P10,000Option 3: P 8,000Option 4: P12,000
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