The Allowance for Overvaluation of Inventories: Branch Ledger Account of the Home

Multiple Choice

The Allowance for Overvaluation of Inventories: Branch ledger account of the home office is debited:

A) When the home office ships merchandise to the branch at a billed price that exceeds cost
B) In a journal entry to close the account at the end of an accounting period
C) When the branch's ending inventory is recorded in the home office accounting records
D) In some other circumstances